83272 CELEBRATING 50 YEARS OF DEVELOPMENT PARTNERSHIP The World Bank The AND UGANDA Category World Bank Section Title 50 Years Name CELEBRATING 50 YEARS OF DEVELOPMENT PARTNERSHIP The World Bank The AND UGANDA Celebrating 50 Years of Development Partnership: The World Bank and Uganda Uganda Map Category Section Title & Contents Name contents Message from the President of Uganda 8 Message from the World Bank Vice 10 President for the Africa Region Foreword by the Country Director 12 and the Country Manager SECTION 1: Energy 16 • Uganda’s First Loan from the World Bank • World Bank Endorses Uganda Protectorate • The Third Power Project • Largest Private Hydropower Project in E. Africa • Testimonies: Rural Electrification Beneficiaries • Challenges to Hydro-electricity Dams • Future Imperatives in Alternative Energy Sources INSIGHT 1: Dr. Tumusiime Mutebile 46 • The Father of Reforms SECTION 2: Education 50 • Education Becomes Universal Right • Science and Free Education Expansion • Ugandan Garden Cultivates Science for Future • The Only Girl in Biosystems Engineering • Linking Research to Policy Implementation • Teacher Training • Constitutional Right to Education • Uganda National Examinations Board and the Bank INSIGHT 2: Prof. Apolo Nsibambi 80 • A Profitable Partnership That Begun Shakily © 2013 International Bank for Reconstruction and Development SECTION 3: Transport 82 • Roads Connect the Country and the Region The World Bank • Road Finance has a Long History 1818 H Street NW, Washington DC 20433 • Uganda Boasts Dense Road Network Telephone: 202-473-1000 • Refurbished ‘Kaawa’ is Alternative Route to Sea www.worldbank.org • Wider Rail Gauge Upgrade Necessary for Future Rights and Permissions • One-Stop Border Eases Regional Trade The material in this work is subject to copyright. Because the World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for non-commercial purposes as long as full attribution to this work INSIGHT 3: Hon. Gen. Moses Ali 102 is given. • Idi Amin and the Impact of the ‘Economic War’ This work is a product of consultants, the staff of the World Bank, and external contributions. The findings, interpre- SECTION 4: Agriculture 106 tations, and conclusions expressed in this work do not necessarily reflect the views of the World Bank, its Board of Executive Directors, or the governments they represent. • Agriculture Undergoing Reform • Artificial Insemination Key in Modernization The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denomi- • Testimony: PhD Beneficiary Applying Skills nations, and other information shown on any map in this work do not imply any judgment on the part of the World • Industrial and Trade Linkages Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. • 80 Years of Unbroken Cotton Research Any queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, • NAADS Extension Services The World Bank, 1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2422; e-mail: pubrights@world- bank.org INSIGHT 4: Hon. Jehoash Mayanja Nkangi 126 Cover Photo: Bujagali Energy Ltd. • Structural Adjustment Program Worked Print Management: Artfield Graphics Additional material about the World Bank’s work in Uganda can be found on the World Bank Uganda website (www.worldbank.org/uganda) 4 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 5 Table Name Section Title of Contents Category SECTION 5: Health 128 SECTION 11: Local Government 254 • Health Undergoing Slow but Steady Recovery • Out-Dated Colonial Structures Being Replaced • Health Systems Strengthening Project • Mbale Showcases Local Gov’t Development Plan • Controlling AIDS and STDs • Local Gov’t Service Delivery’s Paradigm Shift INSIGHT 5: Hon. Gerald Ssendawula 140 INSIGHT 11: Charles Magala 268 • It is Time to Review the Reforms • Retrenchment Was a Necessary Reform Measure SECTION 6: Water & Sanitation 142 SECTION 12: Northern Uganda 270 • National Water Rides the Tide of Time • The Unique Challenges of Northern Uganda • Small Towns Project Becomes Global Model • Testimony: Kony Abductee Now Teaches Science • Hand Washing Improves Public Health • Rebel Massacre Survivors Given New Hope • Kalisizo Showcases Best of Small Towns Water • Safe Drinking Water Refreshes a Community • Solid Waste Management Foul but Critical • Community Road Rejuvenates Quarry Activity INSIGHT 6: Hon. Ezra Suruma 156 INSIGHT 12: Dr. Emily Twinamasiko 290 • Structural Adjustment Painful but Necessary • Mixing PhDs, Fisheries, Forests, Animals, Crops SECTION 7: Environment & Conservation 160 SECTION 13: Analytical & Advisory 292 • NEMA Fights a Tough Battle • Bank’s Economic, Sector, and Technical Work contents • Bwindi National Park Exalts PAMSU • Interview with a Conservation Manager INSIGHT 13: Prof. Charles Kwesiga • Park Communities Benefit from Tourism Revenue • Industrializing for the Future 316 • Uganda Boasts Rich Game Parks Heritage • Forests Provide Life to Village and City • Nakivubo and Lubigi Channels Drain Kampala SECTION 14: Snapshot of Partnership 318 • The World Bank and Uganda Today (Map) • World Bank Projects in Uganda (Chart) INSIGHT 7: Hon. Maria Kiwanuka 178 • Uganda Country Assistance Strategy • Emphasis on Infrastructure, Productivity, Skills • World Bank Group’s Resident Representatives • Republic of Uganda Ministers of Finance SECTION 8: Finance & Trade 182 • Central Bank Reforms Stabilize Economy • Credit Reference Safeguards Depositor Funds Addendum: World Bank Staff 328 • Capital Markets Need More Attention • The World Bank Country Office Staff • Digitalized Land Management Unlocks Potential • Longest Serving Officer Reminisces • Featured Private Enterprises INSIGHT 8: Dr. Louis Kasekende 206 • Importance of Financial Sector Reforms SECTION 9: Privatization & Divestiture 210 • Private Sector Vigor Replaces State Subsidies • Government Goes out of Business • Ugandan Rice Returns to Dinner Table • Private Sector Foundation: Cut Cost of Business • Privatized into Cooperative Hands • Pictorial: Divested Enterprises INSIGHT 9: Dan Kasirye 236 • $1.5 Billion Committed Through IFC SECTION 10: Public Service 240 • The Civil Service College of Uganda • Civil Service Reforms Reduced Ministries by Half • Testimony: A Civil Service College Graduate • Public Service Payroll System Upgraded • National Archive Gets a Promising Future INSIGHT 10: Barbara Waliggo Senkatuuka 252 • Attitude Change Will Transform Public Service 6 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 7 Category Section President Uganda:Name Title Museveni May 24, 2013, Entebbe: President Yoweri Museveni (right) meeting World Bank President, Dr Jim Yong Kim. Photo/Dominic Chavez - World Message from His Excellency Bank Archives the President of Uganda Bank and other development partners, I am Yoweri Museveni sure Uganda, today, is on the verge of striding into the future as a first world country in the next 50 years. Now that we have clearly identified the strategic bottlenecks, especially infrastructure underde- velopment (meaning shortage of electricity, lack of adequate tarmac roads, an antiquated rail- way system and inadequate ICT infrastructure loss-making parastatals while instituting public dren has more than tripled as a result of Gov- coverage), given the achievements we have al- I wish, on behalf of the Government and the people of the Republic expenditure controls. These reforms have been ernment’s substantial investment in Universal ready attained in Education, Health, Regional of Uganda, to congratulate the World Bank upon celebration of 50 successfully implemented and consistently Primary Education (UPE). The gender gap in Integration and favorable access to big external maintained, resulting in positive achievements. most levels of primary education has also been markets, the emancipation of the Private Sec- years of a fruitful partnership with the people of Uganda. eliminated. tor as well as security of person and property, Today, the credibility of Government’s macro- our growth and socio-economic transformation economic management is without doubt ex- Government’s Universal Primary Health Care is irreversible and unstoppable. While it has taken an extremely long time to es- This book tells the story of the 50 years partner- ceptional as evidenced by the strong growth in Policy and the reforms within the Health Sector tablish clarity on the strategies that would spur ship that Uganda and the World Bank continue private investment, including Foreign Direct have brought about a significant expansion in We thank the World Bank and look forward to Uganda’s development and economic transforma- to enjoy in the various economic sectors; a Investment. the usage of the health system. further partnerships. tion, the country has now embarked on the path partnership that has led to a marked and steady to socio­economic transformation. It is re-assuring economic growth. Privatization has given opportunities to com- New investments have been undertaken in En- that the World Bank has remained a key develop- petitive private providers in activities previously ergy and Transportation infrastructure and the ment partner, supporting Uganda’s embryonic steps Over the past 50 years, Government has insti- confined to the Public Sector and has fostered old infrastructure has been revamped. as an independent nation and, later, as we struggled tuted economic reforms such as the liberaliza- innovation and improved service delivery. to restore order following many years of political tion of foreign exchange and commodity mar- As a result of this progress and against the Yoweri Kaguta Museveni and socio-economic anarchy. kets, abolished price controls and privatized In Education, the number of school-going chil- springboard of the partnership with the World President of the Republic of Uganda 8 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 9 World Bank: Category Vice Name President Section Title Message from the AFRICA OVERVIEW World Bank Vice Africa is making progress on reducing After 10 years of high growth, an increasing President for the poverty. The World Bank’s 2013 global number of countries in Africa are moving into poverty update shows that the region’s ‘middle- income’ status, countries achieving $1.25 a day poverty rate has fallen more than US$1,000 per capita income. Of from 58.1% in 1999 to 47.5% in 2008, Africa’s 48 countries, 22 states with a com- Africa Region a 10.6 percentage point decline. The decline in poverty accelerated in 2005- 2008, with nine million fewer people bined population of 400 million people have officially achieved middle-income status, while 10 countries representing 200 million living below $1.25 a day – the first people would reach middle-income status such recorded decline in the number by 2025 if current growth trends continue or of poor. with some modest growth and stabilization. Another seven countries, home to 70 million Makhtar Diop Despite this success, serious devel- people, could reach this milestone if they opment challenges remain in Africa, created economic growth of seven per cent where governance and transparency growth over the coming years. For example, remain weak, and 645 women die Sierra Leone could grow at this rate because during pregnancy and childbirth per of its recent expansion in mining. 100,000 live births. Africa’s long-term growth will increasingly Economic and social conditions are im- reflect interrelated social and demographic proving in Africa. Maternal deaths fell changes creating new domestic engines of by 26% between 1990 and 2009 and growth. Key among these will be urban- child mortality rates are also falling. ization, an expanding labor force, and the HIV infections are stabilizing, primary rise of the African middle-class consumer. school completion rates are rising fast- In 1980, just 28% of Africans lived in cities. er than anywhere else in the world, Today, 40% of the continent’s one billion portfolio. As this 50th anniversary compendium plishments and we modestly want to celebrate and the number of people living in ex- people live in cities. By 2030, this share is September 2013 marked the 50-year partnership anniversary be- notes, the World Bank also played a significant the past 50 years of our partnership. Looking treme poverty is falling. projected to rise to 50%, and Africa’s top 18 tween Uganda and the World Bank Group. Uganda can be proud role in helping to secure debt relief for Uganda. ahead, we see potential for continued and ac- cities will have a combined annual spending of its achievements, many of which have received financial and celerated growth, and transformation towards In 2011, foreign direct investment power of $1.3 trillion. From a hopeful country at independence, a productive, diversified and inclusive economy. flows jumped 25% to an estimated technical support from the World Bank Group. through political turmoil and regional crises, $35.6 billion, after declining sharply and then returning to peace, stabilization, and The World Bank Group remains committed to in 2009 and 2010. The business climate In the past 50 years, the World Bank has funded opment, and several other sectors. growth, Uganda has achieved important results working closely with Uganda to achieve the is improving and favorable economic over 100 development projects with financing which are highlighted in this book. More than country’s development vision in order to elimi- prospects are attracting investment totaling over $8 billion, and complemented this The partnership with Uganda has been rooted in two decades ago, Uganda decisively adopted nate extreme poverty, achieve shared prosperity, flows in the telecommunications, real support with analytical and advisory services. infrastructure development, as the first projects market-oriented policies and implemented a and to be a leader in regional and global develop- estate, and retail sectors. Remittances focused on energy investments that brought range of courageous reforms. While many chal- ment. have rebounded as well, posting a high The World Bank Group has contributed to the electric power to cities, health centers, class- lenges remain ahead, Uganda has dramatically of $23 billion in 2011. country’s progress by supporting macro-eco- rooms, and factories across the country. Infra- reduced poverty and improved human develop- Makhtar Diop nomic and sector-specific policy development structure continues to be the most important ment indicators over the last two decades. World Bank Vice President and investment projects in Infrastructure, Agri- area of World Bank support to Uganda, account- Africa Region culture, Education, Health, Private Sector devel- ing for over 60 percent of the current project We salute the people of Uganda for their accom- Source: World Bank/World Development Indicators 10 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 11 World Bank: Category Name Section Title Foreword From the Country Director and The partnership between the World Bank and Ahmadou Moustapha Ndiaye, the Country Manager for Uganda (left), the Government was however restored in 1986. and Philippe Dongier, Country Director for Uganda, Tanzania, and The new Government soon embarked on re- Burundi. Photos/Sheila Gashishiri, David Sseppuuya structuring the economy through pro-market the Country Manager reforms and political liberalization. The reforms – albeit difficult and painful – bore fruit, and great achievements in poverty reduction and continue to adapt its strategy. This is the flexibility economic growth were witnessed in the follow- that has enabled the World Bank to work in more ing decades. than 100 countries that are at different levels of de- As the Government of Uganda and the World Bank Group celebrate velopment. This is the same flexibility that the World 50 years of partnership, we look back at half a century where Ugan- The World Bank has throughout been an active Bank will continue to bring to Uganda, working to- da has made significant progress and managed to overcome periods and trusted partner supporting the national gether with the Government to take the country to agenda and encouraging the Government of the next level. of political and economic uncertainty. Uganda in its efforts through, inter alia, invest- ments in key sectors including Energy, Health, Uganda still has some way to go before realizing the Education, Transport, and Agriculture. ambition of becoming a middle income country, and the World Bank will remain a close partner in ensur- Throughout the years, the World Bank has stood ing electricity production and distribution from This book is a testament to the great achieve- ing that this happens. The past 50 years of partner- behind Uganda in supporting national develop- Owen Falls Dam. ments of the partnership. But even more so are ship have shown us that a lot can be achieved when ment priorities. During difficult times when the po- the hundreds of current and former projects all you are working together in supporting the same de- litical environment prevented close engagement, the The good collaboration continued through the over the country that are changing the lives of velopment priorities. World Bank remained committed to bringing change 1960s, but was interrupted by the military coup millions of Ugandans every day. Ugandans are, and prosperity to Ugandans. in 1971, which resulted in a breakdown of the and will always be, at the center of our partner- Philippe Dongier economy in the following years. Most of the ship. Country Director The partnership began on September 27, 1963 when gains made in the previous decade were lost. Tanzania, Uganda and Burundi Uganda became a member of the World Bank Group. With the support of the World Bank and other Development is a long-term commitment. And This was less than one year after Uganda gained inde- Development Partners, there were some at- as Uganda moves up the “development ladder”, Ahmadou Moustapha Ndiaye pendence and, by then, the World Bank had already tempts to introduce financial and policy reforms the needs and priorities evolve as well. The Country Manager been assisting Uganda for some time with expand- in the early 1980s, but not much was achieved. World Bank has continuously adapted and will Uganda 12 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 13 Partnership: Bank & Title WorldSection Category Name Uganda Acknowledgements Project Oversight: Ahmadou Moustapha Ndiaye Team Leader: Steven M. Shalita Editor: David Sseppuuya Contributing Writer: Joachim Buwembo Main Photographer: Laura Mulenga Walusimbi Design & Layout: Charles Kintu April 21, 1967, Washington DC: Mr Erifasi Otema Allimadi (center), Uganda’s Ambassador to the United States, signing for an International Development Association (IDA) credit with Mr J. Burke Knapp (right), Vice President of the World Bank and IDA, witnessed by Mr S. Othello Coleman, Executive Director Editorial Assistance & Supervision: Sheila Byiringiro Gashishiri, Asger Hallberg Borg of the World Bank and IDA for Uganda. The $10 million credit was used for the expansion of secondary education, financing 70% of the cost of constructing Coordination & Logistics: Clare Busingye, Mary Babirye, Annette Byansansa and equipping 24 new general secondary schools, and additional facilities for 15 existing schools. The assistance resulted in the creation of 14,000 new slots Archives: Sarah Nsibirwa Nsubuga for students. Photo/Edwin G. Huffman-World Bank Archives Interviews: David Sseppuuya, Bart Kakooza Write-ups: David Sseppuuya Analytical & Advisory Activities Section: Joachim Buwembo January 23, 1998, Kampala: President Yoweri Museveni (right) meeting the then World Bank President, Mr James Wolfensohn (second left) during the latter’s Transcription: Ivan Okuda country tour . Photo/World Bank Archives Proof Reading: Sam Hadido Additional Photography: World Bank Archives, DS Archives, The New Vision, The Daily Monitor, Uganda Railways Corporation, Bank of Uganda, World Vision Uganda, Uganda Wildlife Authority, Bujagali Energy Ltd, Uganda Na- tional Examinations Board, Civil Service College of Uganda, Presidential Press Unit, Kalungi Kabuye, Kakira Sugar Works, Tororo Cement Ltd, National Agriculture Research Organisation, David Sseppuuya Graphics: World Bank Uganda Country Office Background Information (World Bank Country Office): Dr. Joseph Oryokot, Rachel Sebudde, Dr. Peter Okwero, Rasit Pertev, Eng. Labite Victor Ocaya, Barbara Magezi, Innocent Mulindwa, Moses Kibirige, Sam Mutono, Chris Nsubuga, Berina Uwimbabazi, Martin Onyach-Olaa, Suleiman Namara, Barbara Nalugo, Dr. Jean-Pascal Nganou, So- min Mukherji Background Information (Partners): Dr. Dan Semambo, Ndabezinhle Dube, Jean-Marie Kyewalabye, Eng. Paddy Twesigye, Dr. Andrew Seguya, Lillian Nsubuga, Dan Alinange, Charles Kizito, Barbara Ntambi, Dr. Grace Murindwa, Prof. Callistus Baliddawa, Eng. Ben Ebangu, Eng. Martine Nyeko, Dr. Dick Kamugasha, Eng. John Wafula Wandera, Richard Oput, Dr. Japheth Magyembe, Dr. Fred Nalugoda, Eng. Annette Nabagala, Wycliffe Lule, Dr. John Wati- ma, Herbert Tumwebaze, Herbert Nimusiima, Adams Bwambale, Simon Kugonza, Dr. Margaret Driciru, Dr. Moses Amanyire, Lawrence Lumbuye, Xavier Semakula, Gabriel Akugizibwe, Dr. Jimmy Eyiiga, Leonard Okol, Gertrude Atim Ojok, Dr. Anthony Aliro, Joseph Apiri, Severino Ochen, Ajabi Okongo, Joseph Akuma, Samuel Kigenyi, Dr. Daniel Balinanseko, Abel Kagumire, Moses Wotsomu, Eng. Edison Kasaato, Fred Mwambu, Martina Nafuna, Robert Amayo, Harriet Ongaria, Ivan Senfuma, Valerian Ejalu, Justine Nalwoga Lukwago, Geoffrey Kanyali, Phoebe Gubya, John Karuhanga, Jimmy Sekitto, Goretti Sendyona, Prof. Phares Mutibwa 14 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 15 Category Name Section Title ENERGY Energy Sector SECT ION ONE Uganda is looking at putting many more people on the national electricity grid, and making citizens less dependent on unsustain- able sources of energy, which damage the environment and pose long-term dangers to social stability. Multi-pronged efforts have included the First, Second, and Third Energy Projects, Energy for Rural Transformation, a privately operated hydro-power facility, and a mini hydro plants strategy 16 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 17 Power Project Category Name Energy Title Section I: World Bank President Endorses Uganda Protectorate, 1961 “I recommend that the Bank at this time make a loan to the Protectorate of Uganda in an amount in various currencies equivalent to $8.4 million for a total term of about 20 years, with interest (including commission) at 5.75% per annum and on such other terms as are specified in the attached draft Loan Agreement. “Private investment in industrial and agricultural ventures has been small. But the Ugan- da Development Corporation, the Government’s main instrument for economic devel- opment, has been active in promoting both industrial and agricultural investment, in- cluding direct investments in textiles, cement, metal processing, hotels and large-scale tea-growing. The infrastructure on the whole is well-developed. In recent years public investment has been heavy in fields such as Health and Education where the need is great but benefits tend to be long-term. With good management and reasonable stabil- ity in commodity prices, Uganda can expect in the next five or six years a modest rate of growth in its gross domestic product. To accelerate its development, it will need an inflow of foreign capital, including official loans and grants.” Eugene R. Black, World Bank President, March 21, 1961 Uganda’s First Loan From the World Bank September 27, 1963, Washington DC: Uganda By the time Uganda secured its independence from Britain becomes a member of the World Bank’s two af- in 1962, the country was already enjoying the World Bank’s cede power to the Ugandans. The discomfort filiates, the International Finance Corporation (IFC) and the International Development Asso- financing for development projects under the broader ar- over Uganda’s future was not about racial rela- tions as was the case of other emerging states ciation (IDA) when the Articles of Agreement are rangement of the East African colonies. for there was no significant European settler signed by Mr Apolo Kironde (seated), Ambassa- population. Nor was it about the 75,000 Asians dor and Permanent Representative to the United then settled in the country. Rather, the biggest Nations, on behalf of the Uganda Government. Until 1961 all three East African territories were cies amounting to $8.4 million then. The loan ef- factor that made Uganda a risky borrower was Photo/Edwin Huffman-World Bank Archives under British rule and in 1955, the Bank had fectiveness date was June 1, 1961, and Uganda the Kingdom of Buganda, which controlled the advanced a considerable loan then equivalent to was required to repay it in 35 semi-annual in- bigger chunk of the country’s economy and was $24 million to the East Africa High Commission stallments and finally retire it at the end of June harboring unhidden intentions of seceding from for the development of railways and harbors in 1981. The interest rate was 5.3% per year inclu- Uganda. Collection of the debt from Uganda if Kenya, Uganda and Tanganyika. The loan was sive of a 1% commission and the commitment such an eventuality happened would be almost guaranteed by the British Government and the charge was 0.75%. The country thus became a impossible. So the British took responsibility for agency with the sole right to generate, distrib- three territories. World Bank client a full two years before becom- the risk by guaranteeing the loan. ute, and license generation or transmission of ing a member of the World Bank Group. electric power in Uganda. Negotiations for the first World Bank loan given The British guarantee aside, the Bank’s assess- exclusively to Uganda started in the late 1950s Even with those terms that appear stringent ment of the country’s economic prospects was The $8.4 million loan Uganda was applying for and its purpose was to expand the production compared to today’s, international lenders like very promising. The implementing agency, the constituted 60% of the total amount required and distribution of electricity from the Owen the World Bank were at the time not very com- Uganda Electricity Board (UEB) was at the time for the expansion of the electricity generation Falls Dam, which had been commissioned in fortable over Uganda’s future stability after in- also given a very positive bill of health as regards and distribution works. 1954. The borrower was listed as Uganda Protec- dependence and so the United Kingdom stood to managerial competence and technical sound- torate, who was seeking a loan in various curren- in again as guarantor, though it was about to ness. UEB had been set up in 1948 as a statutory CONT. ON PAGE 20 18 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 19 Power Project Category Name EnergyTitle Section II: The Beginning of a Close Relationship Early Work on Uganda’s Energy Infrastructure 80% access Queen Mother at Owen Falls In the late 1950s and early 1960s, the then new UEB Dam and Flume Pipe was a prominent fea- ture on the Mbarara-Kabale highway, just before reaching Kabale town at the base of the Kigezi highlands. It was designed to increase hydro-electric power output in the south-west, and was of UEB found it to be more efficient than most other Uganda Government-owned enterprises. by 2040 February 1959, Jinja: Queen Elizabeth, the Queen Mother (second left), touring the power house of the Owen Falls Dam seen as a forerunner to other similar developments elsewhere. Photo/DS Archives hydro electricity plant, accompanied by In 1981, the Government of Uganda made a An essential part of the national growth and dramatic break with the past and, with the sup- development aspirations is the ‘Uganda Vi- the colonial Governor, Sir Frederick Craw- port from the IMF, the Bank, and other donors, sion 2040’. The National Planning Authority, ford (first right, in black suit). The power introduced a series of financial and other policy with other stakeholders, developed the strat- project had been opened on May 1, 1954 reforms. As a result, economic performance im- egy, guided by the vision statement: ”A Trans- by her daughter Elizabeth Regina II, the proved despite the negative impact of internal formed Ugandan Society from a Peasant to a Queen of Great Britain and then Head of for 50 years at fixed tariff was made, with the security problems and adverse world economic Modern and Prosperous Country within 30 State of the Uganda Protectorate. The CONT. FROM PAGE 19 expectation that this eastern neighbor’s demand conditions. The Government’s recovery program Years.” World Bank’s first loan extended this pio- neering infrastructure. Photo/DS Archives The Second Power Project would keep decreasing as the Kenya Power and Lighting Company matured and as Uganda’s own had as its basic objective the rehabilitation of the productive sectors and the improvement of Launched in 2013, the year after the country domestic demand increased. But the economic existing productive capacities. The Second Power celebrated 50 years of independence from co- The projected growth path of the Uganda Elec- chaos that set in from 1972, with the so-called Project was designed to support this program. lonial rule, the strategy provides for various tricity Board (UEB) that had been so enthusiasti- Economic War declared by President Idi Amin, aspects of national life. cally anticipated at the time of Independence did scuttled most of the projections. Maintenance At conception, the Second Power Project was es- not take into account the emergence of a Mili- was all but abandoned and by the end of the timated to cost $73.4 million from 1981, but the Cognisant of the fact that energy powers de- tary Government in 1971 and the subsequent 1970s, four out of the ten turbines (each with a security circumstances caused delays and by the velopment and transformation, the strategy insecurity with the accompanying economic 15MW capacity) had completely shut down. The time it was completed at the end of 1994, the provides for an exponential growth and expan- breakdown that went on until 1986. It had been transmission and distribution grids were also project had consumed $113 million. sion of electricity access and usage. expected that by the time of completing the neither maintained nor upgraded. Management first loan repayment in 1981, UEB would be in a nearly collapsed and UEB could simply not col- The principal objective of the Second Power Proj- Using the year 2010 as a baseline, and 2040 strong financial position to take on the challeng- lect significant portions of the revenue from the ect was to support the economic recovery pro- as a target, the strategy aims for electricity es of powering the growing national economy. At power it was generating and supplying. UEB was gram initiated in the 1980s to prevent a bottle- consumption per person to grow from 75 kWh commissioning in 1954, the installed capacity of barely keeping the system going, and upgrading neck in the supply of power, through the upgrade (kiloWatt hours) to 3,668 kWh. The propor- 150MW could not all be consumed (or generat- its technology was not even under consideration. and rehabilitation of existing generation, trans- tion of the population with access to electricity ed) due to low demand and limited transmission It is therefore a sad commentary on the country mission and distribution facilities. This specifi- is projected to grow from 11% to 80%. capacity. An agreement for bulk supply to Kenya at the time that even in such a state, an appraisal CONT. ON PAGE 23 20 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 21 Power Project Category Name EnergyTitle Section II: The Nalubaale Dam after the extension of the Owen Falls Dam to a generation capacity of 300MW was a v First Loan Financed central part of the Third Power Project. Photo/The New Vision Energy Infrastructure CONT. FROM PAGE 21 cally meant the rehabilitation of the Owen Falls By the end of 1993, the capacity at Owen Falls hydroelectric plant and the refurbishment of the had been re-instated and the installed capacity transmission and distribution network. It also of the plant had been increased from 150MW in provided for the re-establishment of UEB’s com- 1988, to 168MW in 1993, mainly by rewinding munication capabilities, provision of transport the alternators of the generators using modern and tools, supply of billing computer system, insulating materials. Capacity was still increas- and the reconstruction of the training school at ing due to further rehabilitation and upgrading. Jinja and district offices in Jinja and Masaka. It furthermore provided for conducting of stud- The project did however not achieve its objec- ies to lay the ground for eventual privatization, tive to improve UEB’s financial performance and rehabilitation of the Kampala network and ex- operational efficiency. Despite several tariff in- panding the grid to Western Uganda, and feasi- creases, UEB continued to face severe financial bility studies for the extension of the Owen Falls difficulties until it was unbundled and dissolved station at Jinja. several years later. 22 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 23 Category Power Name Project Energy Section III: Title The Third Power Project The World Bank’s third major intervention in Ugan- Project included the Hydropower Master Plan da’s Energy Sector was the $123.7 million Third Pow- Study aimed at assessing all major hydro sites er Project package. Effective from October 8, 1992, in the country in the context of their generation the project that was supposed to be completed in capacity and also the effect on the total system - A well-lit street in Kampala. Comple- 1997, was extended to 2001 due to some delays. transmission and stability and the Institutional tion of the Third Power Project and Capacity Building, which provided for training the Bujagali Power Project have en- Key components were: in a four-year technical assistance from an over- abled city and municipal authorities seas professional entity to UEB in areas of op- countrywide to provide street light- • The extension of Owen Falls Dam which saw the erations, financial control, management systems ing. Photo/David Sseppuuya generation capacity go up to 300MW. This was and maintenance. almost double the capacity attained by the major rehabilitation under the Second Power Project; The project also set about fighting the water hya- cinth, a weed that produced an emergency that • The safety of the ageing dam structure, which was threatening the operation of the existing dramatically increased to international safety power station at Owen Falls. And with an eye on standards; and the near future, legal and advisory services for the development of a power generation project • Rehabilitation and expansion of the transmis- at Bujagali site were conducted.   sion and distribution system countrywide un- der which the following were executed: Western Finally, advisory services for the privatization of Transmission Line – EIB – which covered the Uganda Electricity Board (UEB) were provided. building of the  Mbarara North Substation, the These involved advising Government on policy Masaka - Mbarara, Transmission Line, the Isha- issues especially the number of companies to ka, Ntungamo and Ibanda Line and the commis- be created out of UEB to handle distribution, sioning of several distribution transformers. concessions to be given at Kiira and Nalubaale, the timing of and ultimate transition from the Also significant was the conducting of the Kampala Single Buyer Market model which would occur District Diagnostic and the reduction of technical after the end of the choncession term. losses in transmission and distribution which had been occasioned by old and worn equipment. The The consultancy also re-valued UEB’s operation- subsequent improvement in efficiency of distribu- al assets, quantified UEB’s distribution, trans- tion can be attributed to the installation of the new mission and generation investment needs, per- overhead lines and rehabilitation of the old line from formed an environmental assessment of UEB, Jinja to Kampala. advised on the unbundling UEB into its respec- tive functions and the assignment of assets and Other significant components of the Third Power delegation of liabilities accordingly. 24 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 25 Bujagali Name Section CategoryHydropower: Title Energy Public-Private Power Project Bujagali Bujagali Energy Limited (BEL) was set up as a pub- lic-private partnership between the Government of Uganda, Industrial Promotion Services, Sithe Global, and Jubilee Insurance. The $902.0 million plant, with an installed capacity of 255MW and meeting over 40% of Uganda’s energy requirements, was commissioned in 2012, and BEL is running it on a 30-year concession after which it will be transferred to the Government for the nominal price of one US dollar 26 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 27 Bujagali Name Section CategoryHydropower: Title Energy BUJAGALI TIMELINE 1990-2003: Initial developer advances project, performs feasibility studies, prelimi- nary design, social & environ- mental programs, purchases lands and begins relocations. Financial support withdrawn in 2003 2004-05: Government seeks new developer. Sponsors re- Bujagali built ply and awarded project 2006: Sponsors form BEL, advance Government agree- ments, financial loans and En- gineer Procure and Construct (EPC) bidding activities East Africa’s Largest Private Power Project 2007: Government agree- ments signed, EPC con- tract awarded (construction starts), financial obligations Construction began in July 2007 with a slight diversion of the River Nile. The power station is equivalent to an eleven-storey building from concluded the foundation to the rooftop. The dam itself is one kilometre long and it consumed 320,000 cubic meters of concrete, 15,000 tonnes of steel and 580,000 cubic meters of rock for the dam embankment. At the peak of construction, over 3,000 men and women worked on the 2008: Transmission line con- project. Photos/BEL struction commences 2007-2011: Continuous con- Infrastructure that serves the nation is an area few, in January 2011. struction with no days lost, except governments, would dare to tread in, more dam completed and filled in so infrastructure whose benefit and returns will be Being downstream from two existing power Nov-Dec drawn out over the very long term. plants, Bujagali conserves resources by re-using water already released from Lake Victoria. It The Bujagali Hydropower Project that cost $902 mil- consists of the dam, concrete powerhouse with 2011: Commissioning activi- lion was designed as a 100-year renewable resource five 50 MW turbines, two spillways, one with ties followed. First transmis- power facility, owned by Bujagali Energy Ltd (jointly gates and the other ungated, and a 132 kV sub- sion line circuit complete owned by Industrial Promotion Services, an agency station, and now supplies nearly half of Ugan- of the Aga Khan Fund for Economic Development, da’s hydroelectric energy. Financing was multi- 2012: First generation Jubilee Insurance, and Sithe Global of the US) with and bilateral – the lenders being the World Bank reached January 2012. Sec- the Government of Uganda as joint sponsors. Group (International Finance Corporation - IFC, ond transmission line circuit International Development Association - IDA complete March Construction of the 250MW facility, 8km down- Partial Risk Guarantee - PRG & Multilateral In- stream from the head of the River Nile in Eastern vestment Guarantee Agency - MIGA), Deutsche Uganda, and a few kilometers from the Nalubaale Investitions-undEntwicklungsgesellschaft 2012: Commercial operation and Kiira Power Stations, started in June 2007. mbH/Kreditanstalt fur Wiederaufbau - DEG/ of all 5 units reached in Au- Commercial operations started in August 2012, af- gust. ter the first transmission line circuit was completed CONT. ON PAGE 30 28 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 29 Bujagali Name Section CategoryHydropower: Title Energy Bujagali completed Bridging the Power Gap Beyond generating power, the project is investing in education, healthcare, and social devel- (Top right) Hydro Power Station gated spill- opment for the communities in the immediate neighborhood. Village health teams were es- Associated work included a significant social term challenges. These interventions were way and powerhouse at downstream with tablished and trained local people in various community-based skills including primary health and environmental program aimed for nearby supported by a policy framework designed turbines that generate power in five units of care, malaria control, condom distribution, and immunization project-impacted villages. The range of activities to ensure sustainable and reliable power sup- 50MW each included agriculture, health, education, tourism, ply. The key elements to improve power sup- business support, vulnerable persons’ support, ply comprised of short-, medium- and long- (Bottom right) Engineers working inside the and services (erosion control, water, power). term interventions. The short-term included vast power plant at installation stage of the Construction was by Salini Costruttori, design emergency thermal generation and energy project CONT. FROM PAGE 28 by Fichtner, and equipment was supplied by By 2012 when Bujagali was commissioned, there efficiency interventions. The medium-term (Above left) An aerial view showing water run- Alstom. Work began with the diversion of the was high annual demand growth of about 8%. interventions included implementation of ning through the turbines, with construction KfW, Proparco/AFD Agence Francaise de Devel- Nile River to the East Channel. This allowed for the Bujagali’s 250MW hydropower power work and equipment installation finished. Pho- oppement & FMO Nederlandse Financierings- access into the powerhouse, spillways and west Before Bujagali started supplying power to the plant, development of 50MW of micro-hy- tos/BEL Maatschappij voor Ontwikkelingslanden, Ned and central embankment dam access. About 25 national grid, the Government had undertaken Bank, Africa Development Bank & European In- meters of excavation into the river bed was re- a set of interventions to address the then short- CONT. ON PAGE 33 vestment Bank, and Standard Chartered/ABSA. quired under the powerhouse. 30 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 31 Bujagali Name Section CategoryHydropower: Title Energy Bujagali eases energy needs CONT. FROM PAGE 31 long-term strategy includes the expansion An early evening view of of generation capacity, especially focusing Kampala’s skyline. More dropower plants, and other energy efficiency on renewable energy. The generation mix is electricity generation and measures. The World Bank’s involvement in Bu- to also include recently discovered local pe- distribution has largely jagali was providing an IDA Partial Risk Guar- troleum to hedge against shocks related to eliminated power ration- antee, IFC lending, and a MIGA guarantee. The low hydrological conditions. ing that used to plunge parts of the city in total darkness. Photo/Johannes Widmann-World Bank Ar- chives 32 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 33 Category Rural Name Section Transformation: Title Energy (Top left) Students of Bukonte Seed Secondary School in Namutumba District, Eastern Uganda, in a new solar-powered computer laboratory. (Middle left) Nurses do their rounds in a well-lit ward at Jinja Hospital. The women´s and labor wards are lit with solar power. (Right) A Uganda Transmission Co. Ltd techni- cian attending to a transformer on a roadside in banana plantation country in South Western Uganda. Photos/Laura Walusimbi Beneficiaries of Over 600 solar systems were installed in health centers, for water pumping, for agricultural firms, and educational institutions Rural Electrification 34 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 35 Rural Category Name Section Transformation: Title Energy (Left to right) A nurse at her station at the solar-powered Atiak Health Centre in Northern Uganda; the storage tanks in Toroma urban center; Beneficiaries of citizens with vessels at one of Toroma’s water points. Photos/Laura Walusimbi (Below) Henry Kibenge, the Head Prefect at Bukonte SSS, enjoyed a continuous improvement in his grades when solar power was installed at Rural Electrification the school, enabling him and other finalists to revise in the evening. Photo/Laura Walusimbi Pregnant Women, University Aspirants, and Tea Connoisseurs Benefit From Solar Power It is midnight, and a pregnant woman is wheeled ing flasks in the otherwise dry rural setting of public education, health, and potable water and into Atiak Health Centre IV for urgent atten- Toroma town, tucked away in a semi-arid corner sanitation services. tion. The nursing officer, Joseph Akuma, has to of Katakwi district. attend to the young mother, now in the eighth The main objective of the long-term program month of her pregnancy, with the urgency that Rural Uganda still remains largely underserved was to develop Uganda’s rural energy and Infor- her condition deserves. He does so with the by electricity. However a ray of light is slowly but mation and Communication Technologies (ICT) briskness of a true professional, only that he has steadily shining through the gloom of nocturnal sectors, in order to contribute to rural transfor- to use a hurricane lamp to examine her, which darkness and making a difference in the lives of mation. There was also focus on a functioning complicates his job. many rural-dwelling Ugandans with the steady conducive environment and related local capaci- rollout of the Energy for Rural Transformation ty for commercially oriented, sustainable service Across the country, off the Tirinyi highway in (ERT) Project. delivery of renewable energy and ICTs in rural Namutumba district, Eastern Uganda, Veronica areas. The Global Environment Objective was to Namugawe has had to move house to get proper Uganda has one of the lowest per capita electrici- build in-country capacity for renewable energy lighting as she prepares for to sit her A’ Level ex- ty consumption (44 kWh/year) rates in the world supply over the long term. aminations. Her Head Prefect, Henry Kibenge, (the medium term aspiration in 2012 when the meanwhile is very optimistic that he will join 250MW Bujagali Project was completed was for Renewable energy, under ERT’s second project, university in 2014. Such has been the improve- 196kWh per capita). By the mid 2000s, grid- is providing hope for Henry Kibenge. He joined ment in his grades since electricity came to his supplied electricity was consumed by 12% of the Bukonte Seed Secondary School in 2008, when school. domestic population, mostly concentrated in the there was no electricity. “We used to use candles Kampala metropolitan area, while less than 1% for night revision, but the headmaster stopped In the near east, it is dusk on a week-day evening of the rural population had access to grid-sup- us (for fear of fire outbreaks),” Henry recalls of the solar panels were fixed on classroom blocks, at the Jinja Hospital. The extensive and well- plied electricity. the years before 2012, when solar power was in- enabling him and the other 90 A’ Level students manicured grounds on which one of Uganda’s stalled. to revise in the evening. In the first term of Se- oldest hospitals is laid form a picturesque back- In tandem with the Government’s Poverty Re- nior 5 in 2012, he scored 8 points; in the second drop against the setting sun, but as the natural duction Strategy Paper (PRSP), which was dis- Now, with his final exams just round the corner, term, he got 10 points; in the third term, he light fades and a darkness sets on the lawns, cussed by the World Bank Board on May 2, 2000, Henry, who is reading Geography, Agriculture, bagged 12 points. He is now expecting 18 points pockets of brilliant light start to pop up. the First Energy for Rural Transformation Proj- Art/Computer, sees himself making it to univer- in the final exams that also serve for university ect that, among other things, aimed at directly sity to study education, as he admires teachers. entry. A little farther to the northeast, patrons wait pa- increasing the quality of life of the poor, was It is easy to appreciate his optimism. There has tiently for mugs of tea to be poured from steam- launched. PRSP targeted improved delivery of been a progression in his performance ever since CONT. ON PAGE 38 36 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 37 Category Rural Name Section Transformation: Title Energy Rural electrification benefits thousands CONT. FROM PAGE 37 well downhill to two reservoirs in Toroma sub- The Ministry of Water and Environment is over- county 2km away, and the Toroma Mission in seeing 20 solar water pumping systems, with a Equally dramatic has been Veronica Namugawe’s Omodo sub-county. Katakwi happens to be in capacity of 195,960 watt peaks, that have been experience with solar power. Before PV (pho- the Lira/Kaberamaido belt that has some of the installed and are in operation in 14 districts tovoltaic) systems were laid, the History, Lit- highest annual global solar radiation (see story countrywide and in three different regions. The erature, Agriculture/Computer student used to page 44). installation of solar panels provides water sup- walk to school from a village 2km away. With ply to communities. newly-installed electricity, she shifted residence In both Omodo and Toroma, Public-Private in early 2013, and now stays 200 meters out- Partnerships of sorts exist. At community access Solar panels are also the new look for Atiak side the school campus, enabling her to do night points, located at regular intervals, the commu- Health Centre IV, where Joseph Akuma works as preps in the classroom and revise well. She ex- nity pays shs75 (3 US cents) to the sub-county a nursing officer. Located on the highway about pects better grades, and wants to read journal- for every 20-liter jerry can of water, money 40km from the border with South Sudan, the ism at university. Her hero, who she is able to which helps maintain the system, especially the health center is strategically placed to attend to watch on TV, is National Broadcasting Service taps and the piping that distributes from the res- extensive medical needs in a fast-growing ur- television presenter Jim Lubowa. ervoir to the scattered access points. It is right ban center. It serves a radius of 30km, and gets next to an access point that the restaurant serv- referrals from as far away as South Sudan. The Up the road from the trading center in Katakwi, ing the locals’ tea is located. center has 18 beds, and averages 15 admissions, The Toroma water pumping point in Katakwi, where the locals are sipping freshly brewed tea, out of about 100 outpatients it handles a day. It With light, Veronica is able to revise at night Eastern Uganda. On a sunny day 4,000 liters are the Toroma Pump Scheme is a true example of Toroma is a beneficiary of an IDA World Bank has always been on the national electricity grid pumped every hour. The water is pumped into renewable energy that is transforming the coun- loan of of $45.0 million and a Global Environ- but, as Nursing Officer Akuma notes, the supply a 60,000 liter reservoir tank located 800 meters tryside. Solar panels reflect their silver-blue cows grazing in the local fields. The panels are mental Facility grant of $9.0 million for the CONT. ON PAGE 43 from the pump station. Photo/Laura Walusimbi coating against the dark hides of local ‘zebu’ generating power to pump water from a deep Electricty for Rural Transformation II project. 38 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 39 Section Title Category Name Energy Infrastructure: The Challenges of Building Dams It is not uncommon that major development projects are af- fected by unforeseen circumstances. In the late 1980s the water hyacinth, an invasive weed from South America, started clog- ging the shores of Lake Victoria and the headwaters of the River Nile. The Owen Falls Dam was particularly affected. By the late 1990s the cascading rapids of the Nile, a few kilometers from its source in Lake Victoria, were a favorite spot for white wa- ter-rafting. Water-rafting proponents campaigned hard for the Bujagali Power Project not to be located there, before the eco- nomic imperative of increased energy production won the day. The Third Power Project (1997 – 2002) and the period. This was in addition to heavy rainfalls Bujagali Hydroelectric Power Project (2007 – due to the El Nino weather phenomenon dur- 2012) both came up against some resistance ing 1997/8 that delayed the civil works at Owen from factors to do with nature. Falls, which affected the commissioning of Gen- eration Units II and 12. The principal component of Third Power Project was the construction of Owen Falls Extension- A few years later, lobby groups feared that the Power Station, a 200MW station on the right construction of the 250MW Bujagali Hydroelec- bank of Victoria Nile River, immediately down- tric Power Project near the Bujagali water falls, stream of the Owen Falls Dam, which was con- downstream from Owen Falls, would scuttle structed in the early 1950s. whitewater rafting. They feared that the slight diversion of the River Nile would render the falls The water hyacinth became a sub component in unusable as the constructors de-watered a sec- the project’s execution due to the emergence of tion for excavating for the powerhouse. But for an uncontrolled quantity of weeds that threat- a country with numerous fresh water attractions ened the operation. Harvesting of the weed con- including the world’s ‘hardest water drop’ at tinued throughout the extension construction CONT. ON PAGE 42 40 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 41 Section Title Category Name Energy Infrastructure: Beneficiaries of Rural Electrification The Nuisance Weed (Above) The water hyacinth weed clogged the Owen Falls Dam for long stretches of The Challenges of time. (Previous page) White water-rafting on the Bujagali rapids before the falls gave way to the hydropower project. Photos/ Communal phone charging using solar power in rural Uganda. The country has more than 15 million mobile phone subscribers in a population of 34.5 million, and yet only Building Dams The New Vision about 9% are connected to the national electricity grid. Most improvise by using the ubiquitous commercial phone charging services, many of which are solar-powered. Photo/Laura Walusimbi CONT. FROM PAGE 40 fuel for power generation into Uganda, which is a landlocked country. This made thermal power Murchison Falls, the world’s second largest fresh generation a costly alternative. CONT. FROM PAGE 39 oratory, in-patient department, and out- water body – Lake Victoria – and the source of patient department, and the ART clinic, the world’s longest river, trading off the Bujag- Among the producers of electricity, challenges which dispenses HIV antiretroviral drugs. ali falls for providing the much needed power in included levels of technical and non-technical was erratic, leading to the nighttime use face of acute domestic and industrial demand system losses (estimated at about 44% in 2005), of hurricane lamps in routine duties and Some 500km to the southeast, maternity was deemed the bigger priority. The decision and high annual demand growth of about 8%, complex operations. and labor also take pride of place in Jinja was made that development needs preceded rec- which was not matched by additions in gen- Hospital. Alongside the main theater, the reational needs, and development of the hydro eration capacity. As the demand continued to Since 2012, the center has had 24-hour intensive care unit, the tuberculosis ward, power project got underway. grow rapidly, even with the significant addition supply, though the solar project is limited and the administration block, with their of short-term thermal generation capacity in to specific wards. “We are now able to do new bright fluorescent bulbs, they seem For the consumer, there have also been chal- 2005-06, the system was unable to meet its load night time deliveries of babies in the La- to outshine the rest of the institution. lenges. In 2004, there was prolonged drought in 2007. The shortfall ranged from 15%-40%. bor Ward,” a relieved nursing officer says, For it is these departments that were con- in the region, which caused a reduction in the For the Government, the power supply situa- emphasizing the significant impact on nected to the uninterrupted solar supply energy generated from existing hydropower fa- tion and the accompanying financial crisis were maternal health and secure child birth. in 2011, and where 200-liter solar water cilities. The other challenge to the industry was affecting growth and threatening to undermine The solar power is wired to the examina- heaters were installed, essentially for the sustained high fuel prices combined with logis- the reforms and other advances achieved in tion rooms, wards, maternity center, lab- benefit of new mothers and babies. tical challenges and the costs of transporting Uganda’s power sector. 42 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 43 Category Name Renewable Energy Section Sources: Title Solar Power’s Promise World Solar Radiation Map 1.0 - 1.9 2.0 - 2.9 3.0 - 3.9 4.0 - 4.9 5.0 - 5.9 6.0 - 6.9 (Above) Solar power is currently being used on a very small scale like these pan- The darker shades show the prime regions of the world for generating solar electricity. not just Uganda’s but Africa’s new cash crop. els. Concentrated solar power generation There are enough solar regions to one day provide all the energy needed by mankind With global demand for biomass pellets being Is Concentrated Solar Power would require much bigger industrial-size installations. Photo/World Bank Archives. well over 200 million tons per annum and rising with some countries cutting back their reliance Uganda’s Energy Future? (Right) The World Solar Radiation map age or biomass heat storage, at costs substan- cinth and banana peels, amongst others. Also, on nuclear power, its latent economic value is tially lower than prevailing rates of East African the more renewable electricity is generated, the unbelievable. hydropower. cheaper and more feasible it will become to use electric-powered vehicles, which would play a There can be well over 100 million tons of dried Uganda has the spots with some of the highest potential for power together with bio-mass gasification and Concentrated solar thermal power can do for big role in converting to more environmentally elephant grass available in Uganda just where it bio-gasification. Uganda and East Africa in the 2010s and 2020s friendly energy sources for transportation. is prevalent. With the leaves only being used lo- solar power generation in the world. There are vast possibilities what mobile phone technology did for commu- cally as cattle feed, its monetary value in Uganda for the country’s energy needs. Concentrated Solar nications in the 1990s. The electricity landscape Biomass Gasification is especially feasible for so far is almost nonexistent. Supplying it in large Thermal Power (CSP) can become radically transformed just like com- improving rural electrification for value addition quantities to world markets at around a half the munication was 15 years ago. technologies in cottage industries such as fruit Cost/Insurance/Freight price of corn/maize on The sun emits 386 billion billion MW of energy drying and packing, as it lowers the cost of en- the international markets would make sound For Uganda to move into middle-income status oil industry now being developed will contribute every day. Technology to utilize this resource is Biomass Gasification ergy. economic sense. It would raise up to a $1 billion there is a huge energy gap to bridge. Access to about 50 MW, from the early production scheme now under development. Due to Uganda’s high a year in revenue from every 5 million tons of energy is one of the biggest development chal- using heavy fuel oils, to the national grid. Note altitude location on the Equatorial Sun Belt, the Biomass Gasification is the pyrolysis of dry bio- Financing the Novel biomass pellets exported. This would dwarf oil lenges of the 21st Century. that fossil fuels have not been considered as a country is receiving abundant radiant energy mass (dried plants) to harvest hydrogen and Investments earnings projections with sustainable green gold long-term power generation solution as they are from the sun. Herein lies an opportunity for the methane with charcoal as a high value by-prod- trumping the polluting and finite black gold. Current energy sources are hydroelectric power, very expensive when not subsidized. installation of East Africa’s first solar thermal uct. The gases can be used in running generators. How do you finance them? Any source of funding biomass co-generated power from industries, power plant. Uganda has a high bio-mass gasification poten- has necessarily to be significant in the amounts Introducing this agricultural export revenue and imported petroleum. By the end of 2012, However, even when fully utilized at 100% effi- tial of well over 10,000MW when fully exploited. it can bring in, and sustainable over a long time stream for the Ugandan economy would more installed capacity could generate 659MW of hy- ciency, these traditional energy reserves would Some of the highest annual global radiation on and in the resources required to produce it. It than secure the necessary capital investment re- droelectric power. not cover the country’s power needs beyond earth is received in Lira – Kaberamaido area. There is also potential of liquefied biogas and must also have a very strong demand on the quired. The country would then deploy the pro- 2020. There is need to invest in both exploration Uganda therefore sits on a very high-unexploit- bioethanol for use as a transport fuel. This could global market. International investment banks posed novel energy generation technologies. However, Uganda’s energy needs are bigger than and development of new energy sources and ed concentrated solar thermal power potential reduce transport costs with cheap fuel by utiliz- can arrange up to 95% financing of renewable what is generated currently, although the con- technologies to meet future demand and vision of well over 100,000MW if fully exploited for ing the vast wet biomass potential of water hya- power stations of any size. They also purchase Some of these renewable energy alternatives sumption per capita is low. The country runs a targets. powering the grid. The country boasts some carbon credits of 35MW and above. At 50MW are still expensive to develop. But the long term massive energy deficit, which costs millions of of the highest solar irradiance values on the and above, plug and play turnkey solar thermal future must be put in consideration. It will take 90 dollars every day. According to the projections, to Alternatives exist with interconnection within globe, well above parts of North Africa, North power plants are already tried, tested and com- strategic thinking, evaluation and funding to meet the vision of electricity-for-all and the Na- the region and Africa, which can ensure that America and Southern Europe and yet in these mercially operational. Such is the 150 MW plant see whether Uganda could indeed embrace the tional Development Plan targets, though power projections are met, though these imply depen- places, commercial solar power technology is in Khureymat in Egypt. Another with 300MW abundant alternative sources of energy. cuts have reduced thanks to the opening of the dence on others. The Inga Dam Project on the already economically feasible and successfully is in Godawari, Abhijeet and Diwakar & KVK in min Bujagali Power Project in 2012, the country still River Congo in DR Congo – a promising cheap, implemented. Germany has an installed capac- India. There are similar large-scale projects in (Adopted from ‘Understand Uganda’, an Indepen- lags behind and will continue to do so as more clean and climate-friendly power project - can ity of 25,000MW of solar PV, and attained a Spain and the US. dence Jubilee publication of Monitor Publications Ugandans enter the job market and form new supply over 300% of Africa’s current demands. 22,000MW output for a few hours in two days in Ltd., Kampala. Article contributed by the Institute families. As more become economically empow- Grand Inga would produce the highest amount May 2012 (compared with the recently launched One ready-made opportunity is biomass pellets. for National Transformation, Kampala) ered, the strain on the available energy sources of hydroelectricity in the world from a single Karuma hydropower dam which is 600MW and These are made from everything from wild grass will become acute. dam. With 52 generator units and 39,000MW Grand Inga on Congo River will be 39,000MW at ‘In 90 minutes, enough to waste agricultural residues such as maize of installed capacity, such a dam could generate a cost of $80 billion). stalks and banana peels or even woody biomass New and radical thinking and changes need to enough electricity for Africa and Southern Eu- sunlight strikes earth to from wild shrubbery. Western countries are happen if the country is to avoid just maintain- rope. Concentrated solar thermal power is cheaper provide global energy turning to this source of energy as they move ing the status quo where only a privileged few and more environmentally friendly than hydro away from uranium-powered nuclear reactors. needs for a year’. have access to or can afford electricity. Uganda New Power Generation and nuclear power. Installation takes just over a Demand is extremely high worldwide. has an estimated hydropower potential of over year from the concept outset, as opposed to hy- 4500MW, biomass cogeneration potential of Technologies dropower, which takes three to six times as long African Business magazine, Elephant Grass (Miscanthus Giganteus in Latin, 1,650 MW, geothermal potential of 450MW and to set up. From solar power plants elsewhere it is October 2013 ‘ebisagazi’ in Luganda, Uganda’s lingua franca) peat (fossil fuels) power potential of 800MW. Ex- Uganda’s best hopes lie in novel power genera- possible to generate 24 hours a day solar thermal is a widely occurring, wildly growing indigenous ploitation would massively reduce the deficit. The tion technologies – concentrated solar thermal electric power thanks to molten salt heat stor- plant. This or any of its variants is potentially 44 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 45 Bank Category Section Title Name Insider’s Governor: View INSIGHT ONE Tumusiime Q: What were the chal- lenges to the economy in the 1980s and 1990s? By the end of the 1980s, Uganda’s economy had policy and fiscal policy to become more indepen- dent of each other. The second critical set of macroeconomic re- forms involved the liberalization of the foreign exchange market. Prior to 1990, the exchange Mutebile shrunk dramatically, with real GDP per capita rate was fixed and had become heavily overval- having fallen by approximately 50% from its ued, with the result that the competitiveness of peak in the early 1970s. Capacity utilization exporters such as coffee farmers was severely was very low as a result of widespread short- damaged. Because of the collapse in exports, ages of essential production inputs and grossly there were acute shortages of foreign exchange, distorted relative prices. In addition, annual in- which was rationed by Government. In 1990, flation between 1987 and 1992 was running at the Government began to take the steps, which over 100%, fuelled by the creation of money to would lead over the next few years to the liber- finance fiscal and quasi-fiscal deficits. The most alization of the foreign exchange market and the urgent challenges facing economic policymakers floating of the exchange rate, which in turn al- at the time were to bring down inflation and to lowed a depreciation of the real exchange rate revive the main sectors of the economy, such as and the restoration of external competitiveness. the coffee industry, so that the economy could The immediate benefit of this policy was a recov- Father of begin to recover. ery in exports, with the value of coffee exports expanding fivefold between 1990 and 1994. Q: What were the critical Over the course of the 1990s, the balance of pay- Uganda’s Reforms on ments was returned to surplus allowing Uganda economic reforms? to steadily rebuild its foreign exchange reserves. Today Uganda has foreign exchange reserves the Economy The critical economic reform for restoring mac- roeconomic stability was to curb domestic bank financing of the fiscal deficit, which was the sin- of almost $3 billion, which is equivalent to 4.2 months’ of imports of goods and services. gle most important cause of inflation. This was Alongside the macroeconomic reforms, a series achieved through the introduction, by the then of structural reforms were implemented in the recently created Ministry of Finance and Eco- 1990s, which aimed to strengthen the supply Dr. Emmanuel Tumusiime-Mute- nomic Planning (MFEP), as it was then called, of side of the economy by improving the efficiency bile has served as Governor of a cash flow management system in 1992, which of resource allocation. Because resource alloca- Bank of Uganda, the country’s in effect centralized the control of Government tion had been distorted by Government inter- expenditure in the MFEP and thereby enabled vention in, and control over, specific sectors of central bank, since 2001. As it to bring Government bank-borrowing under the economy, it was possible to achieve relatively Permanent Secretary in the control. From the early 1990s onwards, fiscal rapid and low cost gains by liberalizing those policy was designed specifically to support the sectors of the economy, which were subject to Ministry of Finance, Planning country’s monetary program, drawn up by the extensive Government control, such as interna- and Economic Development Bank of Uganda (BOU). This meant that the bud- tional trade and coffee marketing. Some of these from 1992 to 2000, and as Chief get was formulated to ensure that Government reforms, such as the removal of the Coffee Mar- borrowing from the banking system was small keting Board’s monopoly of coffee exports, were Economist before 1992, he has enough (which in most years required that it be a condition of the World Bank’s StructuralAd- been central to the country’s negative) to allow for a rebuilding of the coun- justment Program. try’s foreign exchange reserves and a recovery of economic policies, and has bank lending to the Private Sector while at the The Government also embarked on a program frequently been referred same time restraining the growth of the mon- to reform and privatize public enterprises (PEs) to as the ‘Father of Ugan- etary aggregates so as to control inflation. in 1990, with funding from the World Bank to support a Public Enterprises Project. The main da’s Reforms’. Consequently, it was necessary throughout the challenge facing the privatization program was 1990s to plan fiscal and monetary policy togeth- that many PEs were not viable, or were only mar- er through close coordination between the MFEP ginally viable. Consequently, many PEs had to be and the BOU, to ensure that Government’s do- liquidated and their assets sold off, while some mestic borrowing requirement was consistent of the PEs, which were privatized subsequently with the monetary policy targets of the BOU. It struggled to survive in a market economy. is only since the mid-2000s that the Financial Sector in Uganda has grown sufficiently large to The Financial Sector was also reformed and liber- be able to provide modest amounts of financing alized. Banking regulations were upgraded with for the Government without destabilizing the the enactment of a new banking act in 1993. The macroeconomy or crowding out private sector Photo/The Daily Monitor borrowing, which in turn has allowed monetary CONT. ON PAGE 48 46 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 47 Bank Category Governor: Section Title Name Insider’s View Mr. Joseph M. Mubiru, Mr. Semyano Kiyingi, Mr. Onegi-Obel, Mr. Henry M. Kajura, Mr. Gideon B. Nkojo, Mr. Leo Kibirango, Dr. Suleiman I. Kiggundu, Mr. Charles N. Kikonyogo, Governor 1966-1971 Governor 1971 - 1973 Governor 1973 - 1978 Governor 1978 Governor 1979 - 1980 Governor 1981 - 1986 Governor 1986 - 1990 Governor 1990 - 2000 (Above) Uganda’s central bank Governors, and (right) the currency notes they have issued to circulate in the economy from 1962 to date. Uganda’s Economic Reforms Q: How successful was the Structural Adjustment Program? CONT. FROM PAGE 47 The Structural Adjustment Program (SAP) is the term used to de- scribe the set of macroeconomic and structural policies implement- World Bank provided support for the restructuring of the distressed ed in the 1990s. From one standpoint these policies were clearly Uganda Commercial Bank (UCB) in the mid-1990s, which involved successful; they generated a strong recovery of the economy, which removing non-performing loans from its balance sheet and then has continued to this day. Uganda has achieved an average real GDP selling it to private investors in 1997. However, the privatization of growth of 7% per annum over the last two decades, which has led to UCB failed, because of mismanagement on the part of its new own- a doubling of average real per capita income in Uganda and a reduc- ers, and the bank had to be taken into statutory management by tion in the incidence of poverty from 56% in 1992 to 24.5% in 2010. the BOU in 1999. UCB was later resolved through a sale to Stanbic Bank in 2002. Nevertheless, the SAP has not fundamentally transformed the Ugandan economy in the manner many people had hoped. Eco- Q: How have the Financial Sector re- nomic growth has relied heavily on very rapid growth in the labor force (4.7% a year) more than on rising labor productivity or private forms helped the country? investment in productive activities. Although the traditional sec- tors of the economy, such as coffee, have been revived and new ur- Prior to the 1990s, the Financial Sector was very shallow and large ban-based service industries, such as telecoms, have grown rapidly, parts of it, especially banks owned by the Government, were finan- Uganda has not attracted large amounts of private investment into cially fragile. Bank lending to the Private Sector was negligible; pri- labor-intensive traded goods industries. Yet labor-intensive traded vate sector credit was only 4% of GDP in 1991. The financial sector goods industries have been the driving force of structural transfor- reforms, together with the restoration of macroeconomic stability, mation in many successful developing countries. have generated two major benefits for the economy. Furthermore, there has been virtually no progress in modernizing First, the Financial Sector has deepened and intermediation has ac- agriculture; labor productivity in agriculture has barely increased celerated since the turn of the millennium. Private sector credit is over the last 20 years. As a consequence, Uganda has not created 14% of GDP in 2013. Hence banks are now playing a significant role a dynamic and diversified export sector and has failed to expand intermediating funds in the economy. its industrial base. Food production has lagged population growth, devaluation and the merits of dirigiste controls on the economy. fertility rate in the 1990s, Uganda would now be benefitting from leading to a deterioration of the trade balance in food products. The internal debate was only resolved decisively in the early 1990s, a demographic transition, with falling age dependency rates and Secondly, the Banking Sector is in a much sounder financial condi- in favor of the reforms described above. The World Bank continued much higher national savings rates, which in turn would allow the tion than it was in the 1980s; it is well capitalized and profitable, Perhaps most importantly from the perspective of welfare, the to support reforms in the 1990s, both through its project aid and country to devote more resources per capita to human and physical largely because of a stronger prudential regulatory and supervisory economy has not generated much formal sector employment. Only import/budget support, and with technical assistance, but the driv- capital formation. framework. Since banks were restructured in the 1990s, Uganda about 11% of the working age population has a formal sector job ing force for the reforms in the 1990s was domestic. has avoided a serious banking crisis, which would have been very outside of agriculture. A second area where much more should have been achieved is the disruptive to the economy and costly for taxpayers. Q: What could have been done bet- modernization of agriculture. Uganda’s agriculture is dominated Q: How much influence did the World ter? by smallholder food-crop farmers using rudimentary technology Nonetheless, there are still important obstacles to the Financial and producing mainly for subsistence. As a result, productivity is Sector making a more positive contribution to the economy. In par- Bank have on economic policy? both very low and stagnant. The Government drew up a Plan for ticular, intermediation spreads are very high; the net interest mar- The country missed an opportunity in the 1990s to implement com- the Modernisation of Agriculture (PMA) in the late 1990s, which gin is currently 11%, which is the highest in the East Africa region, In 1987, Government reached an agreement with the World Bank prehensive family planning programs to bring down the fertility entailed providing public support through agricultural extension because of high transactions costs and a failure to exploit econo- and the IMF on a policy reform package, which included devaluation rate, following the successful example of other developing countries services to encourage farmers to improve farm practises, upgrade mies of scale in the banking industry. Furthermore, the Financial of the exchange rate and restrictions on domestic credit creation to in Asia and Latin America. As a consequence, Uganda has barely be- their technology and produce a surplus for the market. Larger farm Sector has not diversified away from commercial banks to provide control inflation and external imbalances. However, the World Bank gun its demographic transition. The total fertility rate is still above surpluses would, in turn, have stimulated the growth of agro-pro- a wider range of non-bank financial services to the public; for ex- and IMF were not the decisive actors in changing the Government’s six children per woman and Uganda has both one of the highest cessing industries. Unfortunately, the PMA has never been properly ample the insurance industry in Uganda is only a fifth of the size of economic strategy. There was a vigorous debate within Uganda on population growth rates and one of the highest age dependency implemented and very little progress has been made in moderniz- its counterpart in Kenya. the merits of policy reform, especially with regard to exchange rate rates in the world. Had more effort been made to bring down the ing the smallholder sector. 48 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 49 Name Section Title EDUCATION Category Education SECT ION T WO The strategy for Education has moved from being a largely elit- ist to a more egalitarian approach, which has seen millions more young Ugandans enrol in school. At the higher end, science has been identified as a key transformation imperative, and strate- gies are being implemented to give science a higher profile in the country’s education system 50 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 51 Policy Shift: Category Name Section Title Education School children in Uganda. The national popula- tion is youthful and will continue to be because of the high fertility rate. The Uganda Bureau of Statistics (UBOS) projects the median age of the population to be 15 years by 2017. The school-go- ing age (6-18 years) is generally increasing, with the primary school-age population (6-12 years) projected to increase from 6.3 million in 2007 to 8.9 million in 2017. The secondary school-age Shifting From Elitist to population (13-18 years) would increase from 4.7 million to 6.6 million in that period. Source: UBOS. Photo/World Bank Archives Universal Education sal Primary Education. Many were skeptical but the declaration had been made and there was no turning back; UPE had to be delivered. With the 2008 study on the Efficiency of Public Education in Uganda, to define the problems, identify their specific causes, quantify the losses and identify abolition of school fees, enrollment almost dou- ways of tackling them to secure value for money At Independence in 1962 and the following two decades up to the bled from one school year to the next. for the government, parents and the children. 1970s, Uganda’s elitist education system that was serving a small Obviously, the country could not martial the re- In 1998, the Bank increased its assistance to population was the envy of most of the rest of Africa. For many sources required for such a massive step. In order the sector through budget support. The Educa- years the name Makerere was synonymous to university education to accommodate the influx of students into pri- tion Sector Adjustment Credit (ESAC), and the in the region and the institution was referred to with lofty names mary schools as a result of UPE, the Government Highly Indebted Poor Countries (HIPC) pro- constructed many new schools and expanded gram permitted the Government to allocate ad- like ‘the Harvard of Africa’. existing schools by providing more classrooms. ditional resources to Education. The ESAC was However, it soon became evident that expansion designed in emergency mode to assist the Gov- Great scholars from different African countries pressure and corruption in the Public Sector. By and enrollment had grown much faster than the ernment to deal with the immediate challenges were nurtured not just at Makerere, but also at then, the mismatch between the education sys- quality of education the children were getting resulting from the new UPE policy, by providing Uganda’s premier high schools like King’s Col- tem and the country’s economic capacity was so and, in many cases, quality had actually dete- core budget support to close the financing gap lege Budo. So strong was the foundation of the wide that the country was basically producing riorated as teachers were overwhelmed by the for UPE within the framework of a sustainable country’s school system that it took more than skilled labor for export in the mid-1980s. numbers. education policy and a sound financial and mac- two decades of misrule to bring it to its knees. roeconomic program. The education policy pri- When this happened, it was a hard fall whose im- In 1997, the Government of President Yoweri The World Bank conducted studies, including the pact was worsened by the increasing population Museveni took a bold step and declared Univer- Public Expenditure Review of 2007 and a special CONT. ON PAGE 54 52 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 53 Category Policy Shift: Name Section Title Education Shifting From Elitist to Universal Education King’s College Budo’s Main Hall. Estab- lished in 1906 to educate the sons of chiefs, it is one of Africa’s oldest schools, and has educated many Ugandan leaders. An Ivory Tower It now admits Ugandans from all walks of life. Photo/Kalungi Kabuye Students in discussion in the shadow of CONT. FROM PAGE 53 communication strategy helped stimulate en- time frame and priorities with the National De- enhance the enabling environment for post pri- Makerere’s Main Building. The university, rollment beyond expectations and later helped velopment Plan. Since, the World Bank has been mary education and training through develop- Universal established in 1922, was set up to offer an elitist education to a few who rose through orities supported by the $150 million ESAC (of clarify the role and responsibility of the state finalizing the preparation of a project supported ing an advocacy and communications strategy; Primary Education’s which $75 million was a grant) were to improve and parents for primary schooling. by a US$100 million grant from the Global Part- supporting training to strengthen management, the country’s education system. Students resource allocation and utilization in the sector, nership for Education (GPE). The project aims operations, financial management and national INSTANT TAKEOFF studied largely on state scholarships, but improve the quality and availability of education An important lesson from the ESAC was that to improve the quality of education in public pri- assessments; carrying out studies; and develop- with the advent of universal education, inputs, and to support overall sector manage- communities can effectively take responsibility mary schools by improving facilities, strength- ing a strategy for the expansion of technical vo- state sponsorship at public universities has ment, planning, budgeting and information sys- for school development when adequate support ening teacher effectiveness and school manage- cational and upper secondary education. reduced drastically. Photo/DS Archives Under UPE in the 1997 tems. Other development partners also began and training is available. The community-man- ment. school year, all PTA (Parents to provide budget support in 2000. aged classroom construction program resulted This project, which is still ongoing, increased stu- in the construction of more classrooms in rural The success of UPE created another (expected) dent access to instructional materials through Teachers’ Association) fees Decentralization, community involvement and areas than would have been feasible through situation: An increasing demand for secondary the supply of two million textbooks to 1,559 and school tuition for up communication are key elements of large-scale contractor led strategies, and at half the cost. education. In response, Government launched schools that were implementing the Govern- to four children from each education reforms. Implementation of large- Technical support and training were essential in the Universal Post Primary Education and ment’s Universal Secondary Education reform family (two of whom would scale reforms requires usually the decentraliza- this process. Training Program (UPPET) in 2007, abolishing program. It also strengthened the capacity of tion of a large number of tasks and responsi- fees for children transiting to lower secondary the Ministry of Education and Sports to under- be girls) were abolished. bilities that were previously carried out at the More recently, to help achieve Value For Money and equivalent vocational education grades. The take the development of secondary school infra- At the beginning of 1997, national level to districts and schools. This, in UPE, as well as to identify underlying chal- World Bank, once again, stepped in to fill a fi- structure (construction of facilities); boost the implementation of UPE led in turn, required reorganizing financial flows lenges of quality education, the Bank under- nancing gap, and supported Government’s ef- teaching of science subjects; strengthen schools to an almost doubling of through the system as well as a redefinition of took additional studies between 2011 and 2013. forts to not only expand access to lower second- management capacity; develop a comprehensive accountabilities. In addition major efforts were These focused on existing education policies with ary education, but also provide the necessary strategy for skills development; and to roll out enrollment from 3.1 mil- required to inform individual stakeholders, like adoption of the global instrument for Systems inputs towards quality. A Post Primary Educa- the National Assessment of Progress in Educa- lion in 1996 to 5.3 million in parents, community leaders, local and national Analysis for Better Education Results (SABER), tion and Training Project, worth $150 million, tion at the secondary education level by the 1997, with the Gross Enroll- politicians and education administrators at in attempts to analyze policy gaps in regard to was launched in 2009 with the following compo- Uganda National Examination Board (UNEB). ment Ratio (GER) increasing all levels, as well as NGOs, including teachers teachers, early childhood education, financing, nents: To increase access to lower secondary ed- Development of the national strategy for voca- unions and charitable organizations. Decentral- assessment, school health, and school feeding. ucation through supporting expansion of school tional education in Uganda, or ‘Skilling Uganda’, from 73% in 1996, to 124 % ization and public information were essential el- Further, school-based management, teacher ef- infrastructure; to improve the quality of lower as it is now nationally known, led to a strong in 1997. ements for the success of the UPE program. fectiveness and school feeding in Uganda were secondary education through expanding the ca- and timely focus on the Business, Technical and also studied in-depth under the broader theme pacity of at least one national teachers’ college; Vocational Education and Training sub-sector, Increased school level autonomy and measures of improving learning in Uganda. The findings supporting the provision of in-service training and as a result, the preparation of a $75 million to protect the resource flows to the schools of these studies are continuing to inform im- to improve school management, accountabil- World Bank project is underway to address is- helped create a cost structure that has the po- provements in policy and program design and ity and pedagogical leadership; and improving sues of low skilled labor and unemployment es- tential to ensure adequate funding for instruc- implementation for quality education. The Bank lower secondary school curriculum, assessment tional materials and priority activities identified also supported the Government in refining its and examinations and supporting the acquisi- Source: World Bank ESAC Implementation CONT. ON PAGE 56 by school personnel and parents. A successful Education Sector Strategic Plan and aligning its tion of textbooks and science equipment; and to Completion Report 54 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 55 Policy Shift: Category Name Section Title Education Shifting From Elitist to Universal Education CONT. FROM PAGE 55 pecially among the youth through formal and informal institutions and work environments. The five-year $30 million Millennium Science Initiative (MSI) Project that ended on June 30, 2013, was central in propelling improvements in sci- ence research, introduction of new programs of study and strengthening instruction at public universities. It provided a platform for enhancing of partnerships with private companies for scientific innovations. MSI succeeded in focusing national attention on Science Technology and In- novation (STI), supported the preparation of the prioritized Action Plan for implementing the national STI policy, and supported policy dialogue events that attracted participation from regional and international scien- tists, academics, institutions, and policy makers. All along, the Bank has continued funding research and analytical work in education in light of the growing numbers that qualify to enroll at the universities and higher tertiary institutions, exploring the use of loans, grants and rationalization of fees payable. It has sponsored studies on ICT in Education and the Tertiary Education Sector Report of 2004, which was designed to help Government to better support tertiary edu- cation, using well-compiled and analyzed data for much needed reforms in the sub-sector. The demand for education exceeded all expectations. Projections at the time of ESAC appraisal in 1997 had assumed that a large number of Time to Learn, Come Rain or Shine the overage children, and possibly even school-age children, enrolled in A typical scene of pupils learning in the open, under a tree. A World Bank-funded program is constructing classroom blocks in all parts of the country to accommodate growing numbers of pupils that have enrolled under the free education programs. Photo/Laura Walusimbi schools with overcrowded classes, an extreme development for teaching staff. shortage of classrooms and books, would soon drop-out. In fact, the social demand for educa- The achievements realized so far clearly reflect tion, which had been constrained for a long time the deep and continuing commitment of Ugan- by high private cost, turned out to be much da’s political leaders to the UPE policy. This po- stronger than anybody had expected. And that litical leadership has sustained the commitment strong social demand that had been sustained of communities, local leaders and civil servants for several years in spite of the often limited in- to UPE since 1997. At the same time there is a structional effectiveness in schools deprived of readiness to recognize the problems created by even the barest minimum of quality inputs. This the policy and tackle the implementation chal- suggests that from the perspective of many par- lenges - in pragmatic and innovative ways. The ents even a little bit of education is better than commitment to UPE extends beyond the Min- none at all. istry of Education and Sports. The Ministry of Finance has been ready to allocate the budget ESAC thus helped to change the way resources resources necessary to support UPE and include are channelled to the sector and within it. The them as a key element in its poverty eradication impact of the change in processes was reinforced action program. The Ministry of Public Service by strong donor coordination, while the part- has played a key role in the improvement of the nership with various stakeholders was strength- management of the education payroll and is now ened particularly through the six-monthly re- making every effort to streamline the teacher re- view process. Inter-ministerial coordination was cruitment procedures. introduced on teacher recruitment, deployment and payroll access, leading to more timely pay- ment of teachers. An institutional framework to deliver in-service teacher training on a large Source: UBOS and World Bank projection based on Lutz, Goujon and Sanderson 2007, International Institute for Applied Sys- scale was put in place, to train untrained teach- tems Analysis (IIASA), and the Vienna Institute of Demography model ers as well as provide continuous professional 56 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 57 Category Free Name Section Schooling: Title Education Personal Ambitions Grow With Science and Free Education Expansion Susan Lakot and Sebbi Okumu are still in the formative stag- Sebbi, 17, is in Senior 3 (Grade 10), and wants Koro SS was established as a ‘seed’ secondary Kasambya Parents SS in Mubende, in the recess- Secondary school student Sebbi Okumu mixes to be a teacher “because teachers know every- school in 2004 at the peak of the insurgency. es of mid-western Uganda, is a similar beneficia- domestic chores with studies in his family’s es of their lives, but they have already had an education thing”. Today, he lives with his parents in a neat “Construction begun while the insurgency was ry. It has introduced a double shift, and reduced humble home in Koro, Northern Uganda. Pho- that most teenagers will never experience. The two students compound of circular huts, 2km from the school, on,” says the Headmaster, Joseph Apiri. “It was its class size from 110 students to an average of tos/Laura Walusimbi spent valuable years of their upbringing in an internally dis- where he also earns a living burning and selling intermittent as we had to keep running away; we 70, says Headmaster Lawrence Lumbuye. bricks. could not move the students to the site till the placed people’s (IDP) camp in Northern Uganda, emerging insurgency ended.” When Kasambya’s students gather in the new from there to join school and becoming poster people of the His family was displaced from that village in UPPET project-supplied laboratory, there is a 2003, when he was seven years old, by the insur- The school moved to the site with 252 students palpable difference from the old lab, which had recovery of a vast region rising from the ashes of insurgency. gency of Joseph Kony’s Lord’s Resistance Army in 2009, after security was restored with the de- no gas or running water, and which employed (LRA), and they fled to Gulu town. The expense feat of the insurgency. Today the school has 422 basins, buckets and stoves, for Bunsen burners, Koro Senior Secondary School is located next to of renting in the urban area was too prohibi- students and 15 teachers, and the construction sinks, chamber rooms, reagents and gas systems. the overgrown remains of Koro IDP camp, on tive, and the family relocated in 2006 to the IDP of two World Bank-funded classroom blocks, la- the southern fringes of Gulu town. The road to camp which, ironically, is located next door to trines, and a multi-purpose science block, have Teacher Xavier Semakula is particularly impres- the school and the camp runs astride a railway what would be his new school. The family left the enabled the opening of an A’ Level (advanced/ sive in delivering chemistry lessons in the new line that is choked with undergrowth. Trains camp in 2009 and Sebbi enrolled at the school higher secondary) class, and the doubling of laboratory, safe in the knowledge that what he have not passed here since 1987 when the last two years later, a beneficiary of the Govern- classes to an average of 70 students. is teaching will no longer be theory. “It has been one was attacked by rebels. ment’s Universal Secondary Education scheme, very difficult to make students understand con- underwritten by the World Bank. The World Bank helped develop the strategic plan cepts because many lessons need a practical ap- But now there are feasibility studies by Uganda and financed, with $150 million, the Universal proach, which must be carried out in complete Railways Corporation to upgrade the Tororo- Susan, who also lives near the school, wants to be Post-Primary Education and Training (UPPET) functional laboratories,” he says. He expects im- Pakwach line, and if it comes alive again, it will a policewoman. “They dress well,” says the shy 16 project that had, by mid-2013, supported im- provement in science performance. be complementing what the school and camp year-old. She too spent time in Koro IDP camp provement of secondary school campuses in 657 have already started doing – provide renewed but, courtesy of the free education scheme, she schools countrywide, including Sebbi’s Koro. hope for the local community. sees a future for herself in the police. CONT. ON PAGE 60 58 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 59 Category Free Education Name Section Schooling: Title Personal Ambitions Grow With Science and Free Education Expansion Marching on to a hopeful future with free education after surviving the hard life of a displaced people’s camp (Top left) Susan Lakot and Sebbi Okumu march into school (the disbanded IDP camp is in the background) on their way to the laboratory for a chemistry lesson (far right). Other students of Koro SSS wash their plates at the borehole next to a World itan, with some coming from as far as Kampala, key mandate is: Bank-funded classroom block. Photos/Laura Walusimbi 400km to the south. Founded in 1957 by the Anglican Church of Uganda, it has the spacious • Provision of instructional materials in all orderliness of old schools – quadrangles separat- USE schools (textbooks, science kits and ing administrative units from classroom blocks, chemicals) CONT. FROM PAGE 59 eastern Uganda. and the girls’ dormitories located very far from the boys’. Playgrounds are well distributed with • School expansion through construction of Nastorio Natukwasa, 21, is one of those who Before the new facilities, the old Catholic-found- football pitch, volleyball court, and netball classrooms, libraries, sanitation facilities has already started benefitting. Reading Physics, ed school had a total enrolment of 650; now the ground. But alongside the old plaster blocks that and laboratories) Economics and Mathematics, he hopes to be ad- student population is expected to grow by 150 have served for decades, going through cycles of mitted for either Statistics or Civil/Telecommu- students. In 2012, just three students took Sci- LRA rebel runs and raids by Karimojong cattle • Lower secondary (S1-4) education curricu- nications Engineering at university. “We used to ence exams in the final A’ Level tests that qualify rustlers, the new blocks of laboratory and class- lum review process study in shifts (in the old laboratory) to avoid students for university. In anticipation of the rooms stand out for their newness and the hope congestion,” he says of the change the new facili- laboratory, in 2013, there were 32 Science stu- that they bring. • Development of the national strategy for ties have brought. dents in the lower A’ level class alone. Skilling Uganda with special focus on voca- In the school assembly hall, the 934 students of tional education. At St Elizabeth Girls SS, Kidotek in Serere, the Thankfully the school got new Science graduate Aduku belt out the Ugandan national anthem headmistress, Ms. Harriet Ongaria, has to fig- teachers, alongside eight kits of equipment. The with an enthusiasm that underlines their teen- Contrary to Aduku, Kasambya school is a much ure out how to cope with increased demand. The lab can accommodate 40 students. age energy. The school’s population has grown more local affair, serving almost exclusively the construction, under the UPPET project scheme, in the one and a half years since the two World parliamentary constituency of Kasambya, where of a laboratory and two new classroom blocks, Aduku SS, in Apac in the central north is a much Bank-funded classroom blocks were inaugurated it is one of only two schools offering Universal has attracted new students, since St Elizabeth older school. It is the biggest school in Apac Dis- under the ongoing $150 million Uganda Post is the only boarding school in this part of mid- trict, though its student population is cosmopol- Primary Education and Training Project whose CONT. ON PAGE 62 60 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 61 Category Free Education Name Section Schooling: Title Personal Ambitions Grow With Science and Free Education Expansion CONT. FROM PAGE 61 (Clockwise from top left) Students use the gas system and Bunsen burners in the new laboratory at Kasambya Parents SS; gas welding work at the Uganda Industrial Research Institute; the old library at Kasambya; the new science labora- Secondary School admissions. It was established rent laboratories are improvised from stores”. tory, water harvesting tank and sanitation facilities at St. Elizabeth’s School. Photos/Laura Walusimbi, David Sseppuuya in 1989, but has grown fairly rapidly in that time. Alongside the laboratory, Phase 1 of the project has St. Elizabeth, too, is still in need. Headmistress gifted the school with an administration block, two Ongaria feels that the two new latrines are still Dennis Agwa, who desires to be a medical doc- Outside in the compound, messages stuck to classroom blocks, an 80-seater library, and two la- not sufficient for the population. tor, is particularly grateful. “We are happy to be trees and on the lawn warn students: “HIV/AIDS trines. studying far away from the noisy O’ Level guys. is real”, “Stop early marriage.” The messages are The student population that has been singing We are also pleased that the new buildings have falling on educated ears. But more can be done. The school administration at the national anthem at Aduku is nevertheless lightning conductors. We can study without Aduku says they still need a computer laboratory, a quite happy with developments, seeing especial- fear,” says the Biology, Chemistry and Agricul- library, and science labs, because at present, “the cur- ly where they have come from. ture student. 62 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 63 Research Category Name Section & Science: Title Education Millennium Science’s Ugandan Garden Looks To Long-Term Harvest An African proverb says, “Knowledge is like a garden: If it is not cultivated it cannot be harvested”. As part of Uganda’s development strategy, the Millennium Science Initia- tive (MSI) is heeding this little piece of wisdom that essentially means that “if you do not make effort to acquire knowledge, then you would not expect to have it, and if you do not put the knowledge you have to use, you cannot expect to gain anything from it”. All over the country, from schools to research course. Independent researchers are applying facilities, from factory packing floors to uni- for support at the Uganda Industrial Research versity workshops, from the Makerere Medical Institute (UIRI), while the Uganda Management School to a malaria vaccine-testing project, the Institute hosts the Global Distance Learning seed that MSI planted has started to bring forth program. At Kyambogo University there is a long shoots that promise a solid science-based future distance learning facility, and in Lira a medical for the society. biotech laboratory. (Left to right) Vocational, research, and scientif- ically-based fashion at Kasambya Senior School Busitema University is running an MSI Textile Julius Ecuru, the Assistant Executive Secre- in Mubende, and at Uganda Industrial Research Engineering project; Gulu University has Afri- tary at the Uganda National Council of Science Institute. Photos/Laura Walusimbi, David Ssep- ca’s first BioSystems Engineering undergraduate CONT. ON PAGE 67 puuya, and World Bank Archives 64 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 65 Research Category Name Section & Science: Title Education At Kayunga in the rural countryside 80km north Kamugasha is driven by hands-on training after east of Kampala, Stephen Isiko, proprietor of class academic work, which should plant a seed Flona Commodities, stops in between processes for entrepreneurship. The textile engineering to send a critical piece of equipment to UIRI equipment at Busitema University – laboratory where his team is carrying out a demonstration. scale cardigan maker, ring spinning machine, ra- Flona packs fresh and dry fruit and exports to pier weaving machine, and knitting machine for Japan and Kenya, and once had market in Bel- T-shirts and undergarments – all testify to handi- gium. The company needs a stainless steel drier ness. In that vein, UIRI takes up to 100 industrial to boost production. trainees per annum, mainly from the private sec- tor and universities. At UIRI’s head office in Kampala’s Industrial Area, the director Prof Charles Kwesiga says, as Kamugasha does have a kindred spirit in Profes- he deftly demonstrates an electro-magnetic field sor Callistus Balidawa, the Deputy Vice Chancel- at the edge of his desk, that his institution is “a lor, and Engineer Ben Ebangu, the project col- treasure trove” for investors. In one computer laborator, at Gulu University. The Biosystems lab outside his window, they have developed a Engineering course whose establishment they database of 380 Ugandan industries and their pioneered is just one of the many. Looking for so- technological needs. In 2012, UIRI was named a lutions to bio engineering systems like renewable (Above) A reseacher assembling circuit boards at the Uganda Industrial Research Institute. Photos/ Centre of Excellence for Research in East Africa. energies, biogas production, solar drying systems, David Sseppuuya CONT. FROM PAGE 65 biomass formations, and waste management, the But, Prof Kwesiga acknowledges, without the course passed out its first graduates in 2012, and and Technology, MSI’s coordinating body, says MSI funding, UIRI would be struggling. By some have already started making a mark in the the Initiative is a perfect fit for national devel- March 2006, the institute had 24 workers. When field. They are especially noteworthy of one at opment. “We build capacity and mobilize the MSI came in, it boosted growth to the level that Roofings, the steel giant in Kampala, and another Ugandan population for science and technology today 210 people are employed. In the engineer- at Engineering Solutions, another city firm. It is for economic growth and national development. ing workshop, the sheer presence of old obsolete harvest time. Millennium Science’s The objective is to enable universities and re- equipment right next to shiny new state-of-the- search organizations to produce better-qualified art machinery is testimony of the before and af- science and engineering projects and also for ter of MSI. them to conduct higher quality and more rel- Ugandan Garden Looks evant research for the private sector to utilize to Dick Kamugasha, UIRI’s Technology Develop- improve their productivity for science-led eco- ment Centre director, talks enthusiastically nomic growth.” about post-harvest technologies that they are developing to especially curb an African prob- MSI is a five year, $33.5 million project co-fi- lem of perishable farm produce, like wet coffee To Long-Term Harvest nanced by the World Bank and the Government processing, grain handling, cassava grating and of Uganda to fund research, develop capacity, shelling of groundnuts for cottage farmers. He is and facilitate the Private Sector working togeth- eagerly awaiting a breakthrough with prototypes er with universities and research organizations. that would then be turned to commercial use. 66 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 67 Biosystems Category Name Section Science: Title Education 28 (Left to right) Sunday at work in Gulu Univeristy’s new computer laboratory. Some of Biosystems group’s inventions include a charcoal kiln, which is an energy saver, Not Afraid to Be the a groundnut sheller that would limit human endeavor in the kitchen without hav- ing to use expensive electricity, and a plastics incinerator, which mitigates pollu- tion and littering. Photos/Laura Walusimbi Only Girl In Biosystems Engineering country it was only offered in Gulu University. energy has always been my dream. coursemates take me as a sister. Above all, they So if you missed it at that time, there was no also refer to me as a man since I am the only lady way you would study Biosystems Engineering. It Q: Will you stay in Gulu? among them. Also our lecturers say that we are wasn’t on the private sponsorship scheme. the same since we all qualified for the course on Yes! That is if there is work to do here, otherwise merit. Sunday Aryemo is studying for the Bachelor of Science in Biosys- Q: How important is the Computer Labora- I would go anywhere as long as I have got some- tory to your course? thing to do in that particular place. tems at Gulu University. The first of its kind in Africa, the Millen- nium Science Initiative (MSI) project course produces engineers The course has some practical course units that Q: How many are you in the class/year? require the use of computers and the Internet with entrepreneurial skills, who can handle biosystems in an envi- such as Matlab, Engineering drawing (Auto- We were 13 from year one up to third year when ronmentally friendly manner. It is administered by the university’s CAD), GIS (Geographical Information System), the World Bank stopped sponsoring us (in a Faculty of Agriculture and Environment. ArchCAD, Solid Edge and Internet. graduated system of scholarships – the pioneer group got full four-year sponsorship, the second Q: How important will the workshop, yet to group three years, the third group two years, and be fully equipped, be for your studies? the fourth group, Aryemo’s, one year scholar- ship). But currently we are 12, the other student Students’ practical skills will be improved since dropped out because of tuition problems and Q: Why did you choose to study Biosystems University? they would be carrying out their practicals right promised to come back and continue next year. Engineering and not any other course? from the workshop other than going out to look Actually it was not easy to join Gulu University elsewhere like in the previous years. Also the Q: Would you encourage others to join the Biosystems Engineering is an engineering-based especially for this course because it was so com- finalists will have a place to fabricate their ma- course? If so, why? discipline that integrates engineering with bio- petitive. The cut-off mark was so high that out chines (projects) at a reasonable cost other than logical sciences to address the agricultural, envi- of the 500 students who applied only 19 were going out and fabricating at very high cost. Yes! Definitely! This is because Biosystems Engi- ronmental and food safety concerns across the admitted in my year. neering combines all other engineering aspects production and processing system, from farmer Q: What do you expect to do when you grad- and this gives it an added advantage over the to consumer. It incorporates all disciplines of Q: If you had not secured the Millennium uate? other courses. Engineering like civil, electrical, mechanical, ag- Science Initiative scholarship, would you ricultural, and because of this, I chose to do it have still done BioSystems Engineering? I would love to get a job that can earn me a liv- Q: Does being the only girl help or hinder because it is actually the best course for me. ing, start a business, that is, if I get some capital your studies? No! Because by that time the course was only and above all, I would love to continue with my Q: How easy was it to get a place at Gulu sponsored by the World Bank and in the entire studies and specialize in Renewable Energy since Not really; this is because there is respect. My 68 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 69 Category Science: Section Title Education Name (Clockwise from far left) A student carrying out an experiment at Kasambya Parents SS in Mubende; Ecuru expounding on the National Council of Science and Technology’s philosophy; and textile fabric equipment at Busitema Univer- sity. Photos/Laura Walusimbi, David Sseppuuya Millennium Science is which are malaria endemic. There is also a project, at Namulonge Agricultur- Linking Research al Research Institute near Kampala, where they are tackling the cassava mosaic that is devastat- ing lots of farmers’ crops. We expect to make tools that will help scientists come up with genes to Policy that are resistant to the virus. At Makerere University, MSI is present in the College of Engineering, Design, Art and Technol- ogy, where there are four projects. One of them has upgraded the surveying component into the Julius Ecuru is Assistant Executive Secretary of the Uganda National Department of Geometrics and Surveying. We Council for Science and Technology (UNCST). He is also a chemist are now able to produce world class surveyors. and science policy analyst. There is also a program at Makerere that has up- graded the land economics department; some personnel are working on renewable energy re- Q: You are misplaced - a chemist and you evant research for the Private Sector for science- sources within the same facility, and researching are in administration!? Wouldn’t you rather led economic growth. on ways of using new technologies like ozone and Kyambogo University. able to boost the cotton and textile industry. A and others to treat water. be in the laboratory? Uganda is aspiring to become a middle income substantial portion of MSI funding, more than Yes, but you also need scientists in administration; country as soon as possible and we know that At Kabale University, they are working with 65%, went into equipment - new machinery, MSI has upgraded the physics laboratories at we need to link what we do in the lab and policy mak- scientific knowledge and human resources will the National Teachers College, using university experimental facilities, renovating engineering Makerere to be state-of-the-art facilities; very ing. take us to that vision and so the National Devel- facilities to improve skills capacity of teachers workshops, and pilot plans. good for university students but also secondary opment Plan itself has put science and technol- coming through the NTC. At Gulu University school teachers who can use them. Q: What’s the Millennium Science Initiative? ogy as the engine for that goal. we started a systems engineering undergraduate Gulu has a state-of-the-art weather station program that is training engineers who are very serving Northern Uganda and Southern Sudan. At the College of Health Sciences MSI has helped The MSI is a five-year $33.5 million project co-fi- Q: Do you have any operational areas or versatile, combining the environment with engi- There is also a state-of-the-art bio-systems engi- to improve the curriculum into one using com- nanced by the World Bank and the Government to neering and technology, thereby adding value to neering laboratory and a molecular diagnostics munity-based learning approaches, sending out fields? build capacity and mobilize Ugandans for science biological resources and farming systems. laboratory that is looking at controlling tsetse doctors to the field to understand the issues and and technology for economic growth and national MSI is a national program that operates in all flies through building new diagnostic tools. work together with the communities. development. parts of Uganda. We have projects at Gulu Uni- In Busitema there is a textile engineering un- versity, Kabale University, Serere National Ag- dergraduate program. The university emerged In health we are supporting a project, the Medi- Makerere is studying the human papillomavirus, MSI enables universities and research organizations ricultural Research Institute, Makerere Univer- as a center of excellence in textile engineering cal Biotech Labs, that is helping to build capacity which is a key agent in causing cervical cancer in to produce better qualified science and engineering sity, and Busitema University. We have worked in East, Central and Southern Africa, and right for testing malaria vaccines. Most of this work projects and to conduct higher quality and more rel- with the Uganda Industrial Research Institute now they are training engineers that should be is in Lira and Apac areas of Northern Uganda, CONT. ON PAGE 72 70 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 71 Science: Section Title Education Category Name The Uganda National Council of Sci- ence and Technology’s head office in Kampala was constructed with World Bank funding. Photo/David Sseppuuya Millennium Science is Linking Laboratories UNCST in its role as a policy coordinating body and advisory organ to Government, as well as that of our sister organization the Uganda In- Q: Which international partnerships does UNCST have? to Policy dustrial Research Institute. Ugandan scientists have, for the first time, been exposed to local competitive-based funding for research and in- novation. This in itself is an innovation in this We work very closely with our sister agencies in the East African Community - the Kenya National Council for Science and Technology, Tanzania Commission for Science and Tech- country; the fact that you can have a beautiful nology, the Rwanda Department of Science idea or product, and there is somewhere you can and Technology, with Burundi, and Ethiopia. CONT. FROM PAGE 71 tional development activities. With World Bank go and seek for assistance to develop the idea support we have been able to build momentum further into something beneficial to society. The Swedish International Development women. Then there is a degree program in bio- in the scientific community, the momentum of That keeps our scientists thinking, being cre- Agency is supporting activities related to bio technology at the College of Natural Sciences. managing science funding facilities and actually ative and hopeful to continue innovating. sciences innovation in Uganda and the region. getting the scientists to be more productive. Q: What are the key highlights of MSI’s In the wider community youth and students are UNCST also collaborates with the department relationship with the World Bank? We have also been able to train more than 30 able to train through the school business pro- of science and technology of the Republic of PhD students and over 50 Master of Science stu- grams and the National Science Week that has South Africa in a joint memorandum of under- It goes back to the early 2000s to a project to dents in various science disciplines. been running since 2007, mobilizing the popu- standing to support research and innovation document and find ways of integrating indige- lation to embrace science and technology as an between the two countries. We also collabo- nous knowledge into poverty eradication and na- World Bank support has helped strengthen engine for economic growth. rate with the European Union. 72 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 73 Teacher Education Name Section CategoryColleges: Title Teacher Training Complements The Soroti College campus: Under the Teacher Development and Management System (TDMS) from 1993 to 2000, the Students’ Education World Bank supported 10 primary teach- ers colleges, with the Government and other partners funding another eight. A primary teacher education curriculum, headteacher management training cours- es, and teacher educator courses were developed. Photo/Laura Walusimbi. They look like secondary school boys and girls, but the PTCs were given four tasks: Pre-service training Social Studies for grades 1-4; the development of introduced to monitor the qualitative aspects of of new teachers; in-service upgrading of prac- criteria for textbooks and the training of writers; examinations. 369-strong student body on the vast 45-acre campus is ticing, previously untrained, teachers through the writing of textbooks and teachers’ guides; vocation courses and distance education; in- the supply of supplementary reading materials Another component consisted of the provision actually made up of adults. service training to bring new methods, text- for grades 5-7; the training of children’s litera- of textbooks and teachers’ guides for English, books and learning materials to teachers in the ture writers, illustrators and designers; the writ- Mathematics, Science, and Social Studies, in schools; and management training and support ing of children’s literature; and the procurement quantities sufficient to achieve student-book for head teachers. and distribution of the publications for use in ratios of 3:1 in the first four grades of primary Soroti Core Primary Teachers College has a truly ly recruited teachers usually being unqualified schools. school. Supplemental reading materials (300 enviable campus, having shifted to new govern- and instructional materials remaining scarce. It A total of $14.4 million was given for enhanc- titles for grades 5-7) was also purchased and ment-owned land from a Church of Uganda site was difficult for pre-service teacher education to ing strategic Ministry of Education and Sports Exam reform was accomplished through the es- 10 additional titles for these grades were de- in 1999. Located a few kilometers outside the attract candidates, as salaries were still low and functions, designed to boost planning and pol- tablishment of national curriculum committees veloped. Sufficient quantities were purchased regional capital of Soroti, the college is laid out working conditions were difficult. icy analysis. The Education Planning Unit was for each examined subject to monitor validity; to provide 80 books per school, and managed on grounds that house a boys’ dormitory, girls’ strengthened through computerization, techni- the introduction of a system of continuous as- through book boxes and/or the establishment quarters, sickbay, administrative block, lec- Some $38.2 million was dedicated to improving cal assistance and training, and the provision of sessment to ensure the teaching of subjects oth- of primary school libraries. A book management ture rooms, multipurpose hall, and generously teaching and learning in primary schools. The equipment. A new National Assessment of Prog- er than those traditionally examined; increasing course was included in the pre-service and in- spread sports grounds that dominate the center Government established a Teacher Development ress in Education (NAPE) survey was developed the number of exam questions testing higher-or- service teacher training programs. Nine hundred of the campus. The relocation was funded by the and Management System (TDMS) in 10 of the and conducted every three years; and policy der cognitive skills; providing detailed feedback thousand textbooks, 95,000 teacher guides and World Bank, and the Principal, Valerian Ejalu, is then 38 districts. The TDMS was to consist of a studies for textbooks and secondary education to teachers on pupil performance on the Primary 16,500 sets of supplemental reading materials all the more excited for it. system of up to 16 reformed or “core” Primary development were also conducted. This has been Leaving Exam (PLE); and creating systems of were also provided. Teachers Colleges (PTC), each of which would annual since 2003. formal information exchange between the In- In 1993, the Bank approved the $52.6 million be linked to about 25 “coordinating” schools, spectorate, the PTC, the National Curriculum Primary Education and Teacher Development which in turn would be linked to a surrounding There was curricular reform for the development Development Centre and the Uganda National Project (PETDP), against the background of new- network of about 10 “outreach” schools. The core of syllabi for English, Mathematics, Science and Examinations Board. A research program was 74 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 75 Category Primary Education Name Section School: Title UPE Genesis: ‘All Ugandans Have Constitutional Right ‘Now Let Me Proceed (Above) Mr Wokorach at his new To Education’ solar-powered staff house. (Below) The old staff quarters. Photos/Lau- ra Walusimbi To My Retirement’ To see Geoffrey Wokorach is to see a dedicated public servant The 1987 Education Policy Review Commission (EPRC) made an was designed to assist the Government to deal with the immediate challenges resulting from heading to his retirement a truly satisfied man. urgent call for democratization and universalization of access to the UPE policy, by providing core budget support basic education. This policy priority was re-affirmed by the Gov- to close the UPE financing gap within the frame- work of a sustainable education policy frame- The project that is constructing teachers’ houses stand right next to the new World Bank- ernment work and a sound financial and macroeconomic has had great personal impact as the soon-to- facilitated staff quarters. The old one used The White Paper Committee was appointed in out rates exacerbated these inequities. program. Education policy priorities supported retire headmaster of Bungatira Central Primary to use hurricane lamps for lighting, had no 1991, and it underscored what is enshrined in by ESAC were to improve resource allocation and School on the northern outskirts of Gulu town, lightning arrestor, and the kitchen was sepa- the Uganda Constitution that states that "all At the same time, public expenditure on edu- utilization in the sector, improve the quality and testifies. rate from the main house. persons have a right to education", and also reaf- cation was inadequate. As much as 20% of the availability of education inputs, and to support firms that the state shall promote free and com- budget allocated for primary teachers' salaries overall sector management, planning, budgeting Mr. Wokorach has the excitement of a small boy Mr. Wokorach, who will retire in 2014 from pulsory basic education. was going to "ghost" teachers; only 28 percent and information systems. with new toys as he proudly shows off the fa- the 738-pupil school, says, “This house is one of funding for non-salary inputs in schools ever cilities of his new two-bedroom house. A living of the best I have ever seen.” Of his teach- Government reiterated this goal in its Poverty reached the schools - the rest was diverted at the Increased efficiency in the use of resources to room, kitchen, latrine, water tank tapping rain- ing staff of 14, five are now resident on the Eradication Action Plan of 1997. national or district level. ensure the financial viability of UPE, as well as water, solar power, and lightning arrestor seem school campus, in similar facilities. He says measures to increase efficiency in teacher and ample reward for decades of service in an other- that that makes it easier for him to manage Efforts to reach UPE were thwarted, however, by It was against this background that President classroom utilization were essential. Specifically, wise under-appreciated profession. the teachers. the inability of many poor Ugandan households Museveni, in December 1996, announced a bold Government planned to: Introduce double-shift to pay the private costs of schooling. A study new initiative to achieve universal primary edu- teaching in selected grades in a small number of As if to illustrate the contrast, the old houses In many affected schools, teacher efficiency in the mid-1990s found that parents financed cation in Uganda. The increase in enrollment schools in 1999 under voluntary agreements; pi- in time management, motivation, and extra about 60% of the direct costs of school-level exceeded all expectations. The Government lot multi-grade teaching in at least two schools time given to pupils was improved with the education. Annual fees and parent-teacher as- suddenly faced an education emergency that re- in two districts; implement an action plan to new houses. sociation dues averaged at that time $6-8 per quired an immediate response. It was clear to all prevent excess supply of teachers, following a child, a significant burden for many households concerned that unless action was taken to estab- study on primary teacher supply and demand; Having spent many years in service, Mr. in a country with a GDP per capita of less than lish minimum conditions for effective instruc- and to expand classroom construction through Wokorach, who will retire to his ancestral $300 at the time (by 2013, GDP per capita stood tion, the deterioration in quality might cause a piloting of different modalities involving com- village in Anaka, 40km south west of Gulu, at over $500). By 1995 almost 60% of school- backlash to the UPE policy, resulting in a decline munities, Private Sector and Government. now feels amply rewarded. He will probably age children remained out of school. Girls, poor in primary school enrollment, particularly by be all-too-happy to finally take his leave, children and children living in remote areas were the poor. ESAC was a $155 million project, of which $75 knowing that his school enters a bright fu- particularly disadvantaged. Poor quality of in- million was a grant. ture. struction reflected in high repetition and drop- The Education Sector Adjustment Credit (ESAC) 76 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 77 Section Title Category Name Education Examinations: (Left) Candidates writing their final exams at one of the UNEB-registered examination centers. Photo/The Daily Monitor (Right) Education Minister Jessica Alupo (in black skirt and jacket) inspecting the UNEB printing press. Photo/UNEB Examinations Hold No Fear for the Bank Primary Leaving Exam Candidate Categories for 2012 Every year, hundreds of thousands of students walk into the exam Total room with various emotions, ranging from trepidation through anxi- ety, to enthusiasm, to sit their final examinations. The Primary Leaving Examination (PLE) is the cli- they are writing is the World Bank. Yet there is er. New additions have been a web machine, a Non-UPE Series1 max of seven years of primary school education. The an close connection. convertible web (caster), an extra folding ma- Uganda Certificate of Education is granted to those chine, computer-to-plate equipment, and a mini who have completed Ordinary Level, or lower sec- The printing press, where all national examina- electronic web. ondary school, while those aspiring for university tion papers are printed, was financed through a and other tertiary institutions sit for the Uganda credit from the World Bank. Situated just outside Today the press, which was installed in 2001, Advanced Certificate of Education, (Advanced Level). the campus of Kyambogo University in Kampala, prints examinations stationery like answer UPE it is a modern printer that boasts modern com- booklets and marking stationery as well as ex- There is also a set of other examinations, including puters for graphic design, color separator, and an amination question papers. Other printing jobs Uganda Business Education Certificate and diplomas automatic plate maker, in the Pre-Press section. include printing of calendars (full color), post- of various classes, as well as the Uganda Technical ers (full color), the UNEB Newsletter, Christmas 0 100,000 200,000 300,000 400,000 500,000 600,000 Education Certificate and related diplomas. The Press Room has the Duplex perfector, the cards, and past papers booklets. Sorz- two color printer and the SM74, all made Source: Uganda National Examinations Board The Uganda National Examinations Board (UNEB) by Heidelberg, a global industry leader in print- Another World Bank intervention in examina- is synonymous with these emotions. What many ing equipment. The Post Press has Stalfolders, tions has been in the area of reforms. Prior to students, though, will not associate with the papers gang stitchers, perfect binder, drills and a crash- 1993, the $52.6 million Primary Education and Teacher Development Project (PETDP), national Registration for Uganda Certificate of Education Over Five Years Registration for Primary Leaving Examinations Over Five Years curriculum committees existed for each exam- Year Candidate Candidates Absentees % Absent ined subject, but their responsibilities were Year UPE Non-UPE Total No. of Centres Registered Who sat unclear. Specific terms of reference were devel- 2012 463,332 102,331 565,663 11,171 oped during project implementation, and com- 2012 268,906 262,987 5,903 2.2 mittees reviewed test plans, past examination 2011 446,928 89,005 535,933 11,139 2011 273,363 267,024 6,357 2.4 papers and input from the National Curriculum 2010 431,123 80,934 512,057 10,906 Development Centre. Committees included the 2010 264,928 260,080 4,848 1.8 Inspectorate (Ministry of Education), examiners 2009 218,056 214,207 3,849 1.8 2009 444,918 68,301 513,219 10,645 and schools to ensure the quality of test items 2008 419,312 66,575 486,312 10,511 and congruence with curricula. The committees 2008 201,750 197,958 3,792 1.9 contributed to the improvement of examina- Source: Uganda National Examinations Board tions. Source: Uganda National Examinations Board 78 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 79 Category Ex-Prime Name Section Minister: Title Insider’s View Agriculture, not yet transformed, is main employer of Ugandans INSIGHT T WO Apolo Nsibambi formal sector, 12.6% informal sector, 14.4% agriculture, 73.0% ‘Mistakes Gave Way to Profitable Partnership’ Source: Uganda Household Survey 2009/10, Uganda Bureau of Statistics mate challenge is affecting agriculture adversely. their priorities and how they would implement There were three rounds of debt forgiveness: ments of other bodies. Government must subsidize irrigation, fertil- them. This approach enabled the Government to debt buy-back, Highly Indebted Poor Countries izers and mechanization. Urgent land reforms own the difficult economic programs. (HIPC), and Multilateral Debt Relief (MDRI). In order to do this efficiently, an independent which Government is addressing include sort- body should be set up to determine salaries of ing out dual ownership and land fragmentation. Second, the World Bank did not pay serious at- The World Bank adopted the following negotiat- the Executive, Judiciary, Parliament and all oth- The World Bank supports increased agricultural tention to the importance of good governance ed conditionalities: Wasteful spending on state er bodies using a scientific method. This arrange- productivity of small farmers by funding NAADS and preservation of human rights. But later on, enterprises such as Lint Marketing Board and ment will require amending Article 85 and other which provides high yielding seed varieties to they made a significant recognition of this area. Coffee Marketing Board were curtailed through provisions of the Constitution. The World Bank farmers and good quality animals. privatization. Government had to divest it- advanced a loan to the Government of $100 mil- The Bank’s major achievements: self from commercial activities and leave them lion to implement the Northern Uganda Social The second challenge is that while economic to the Private Sector. Since the Private Sector Action Fund Project 2 (NUSAF II). growth is averaging 6% per year, there are major First, it enabled Uganda to restore macroeco- was weak, special programs were introduced to disparities. The Government and the World Bank nomic stability. By 1986, inflation was over strengthen it. The Inspector General of Government (IGG) have addressed these problems by adopting an 200%. There was a severe shortage of foreign was given money to monitor the districts, a task inclusive and sustainable growth approach. They exchange. Roads were in a poor state. The World However, the NRM Government insisted that which enabled the IGG to deal with corrupt of- are addressing the poor by encouraging agricul- Bank gave Uganda money to import essential there were strategic sectors like roads, power ficials. The districts determined their priorities tural productivity, and giving skills to peasants goods and services. Experts came and were generation, universities and railways in which and indicated their work plans to the Permanent through vocational training. However, address- joined by the academic staff at Makerere Univer- Government must play a key role, because these Secretary, Office of the Prime Minister. Where ing disparities requires hard decisions such as sity and others to study the country’s financial are public goods where returns are low and long the Permanent Secretary discovered that the taxing the elites more and using the money to problems, after which the reforms were adopted. term and where the Private Sector will be re- district lacked skills to determine their priorities address poverty. The elites, some of whom are in- luctant to invest in. For example, Government effectively, he gave them technical assistance. Government, tend to resist additional taxation. Sector reforms included strengthening bank provided guarantees to the Bujagali power sta- Members of Parliament were encouraged to supervision by the Central Bank. Some banks tion sponsors. Second, Government expenditure work closely with their districts especially in de- Unemployment is the third critical problem. The in America collapsed in the 2000s because they must not exceed revenue. Uganda Revenue Au- termining priorities of their projects. Government is grappling with it by providing had not been well regulated and supervised. thority was created to collect revenue more ef- a Youth Fund, and value addition to Uganda’s Uganda was able to cope with the global finan- ficiently. Assistance was also given to the districts in ag- products, which creates jobs. The fourth prob- Rt. Hon. Professor Apolo Nsibambi, Prime Minister of Uganda, 5 April 1999 to 24 May 2011. cial meltdown because the Governor of the Bank riculture, education, health, water, roads, voca- lem has been corruption. The IGG should be Photo/The Daily Monitor of Uganda had supervised the banks effectively. Third, we liberalized the foreign exchange mar- tional skills, value addition and marketing, agro given more money to tackle corruption. The fifth ket and the current and capital accounts. Con- forestry, and afforestation and woodlots . problem is the high population growth rate of I take this opportunity to pay First, it dedicated development programs to The Uganda Commercial Bank where the gov- sequently, investors bring capital for investment 3.2%, which is higher than agricultural growth. economically desperate African countries that ernment held 100% shares was sold to private and repatriate it without restrictions. This mea- Challenges Along the Way The high population growth is outstripping the special tribute to the World wished to access its resources in order to survive investors who were far more efficient. sure has helped Uganda balance its external ac- health, educational and other requirements. Bank for having shared a prof- economically. Consequently, these programs counts. The challenges included inflation that adversely Furthermore, most of the population is not itable partnership with the were not owned by their governments. Second, the World Bank enabled Uganda to get affected the overall budget, corruption in the dis- skilled. The rate of industrialization is very low. debt forgiveness from its creditors. The proceeds Fourth, the Public Service was restructured un- tricts, which undermined the implementation of And so the population lacks jobs from factories. Government of Uganda for 50 Whenever Government leaders faced political were used to finance Universal Primary Edu- der the Public Service Performance Enhance- some projects and, thirdly, there was inadequate years. I must point out that ini- resistance because of reforms they had to imple- cation (UPE) and water and health programs. ment Project. However, public servants have not provision of livestock and related extensions on Under these circumstances, the Government ment to recover from economic decline, they These projects have benefited the poor. While received the increased financial renumeration, services to communities. Otherwise the overall should adopt a policy of population control and tially, the World Bank made two would argue publicly, but wrongly, that the harsh UPE’s quality must be improved, it is producing which they expected. Consequently, they are de- picture is one of success. family planning. The National Planning Author- mistakes. measures were imposed by the World Bank. a literate population, which can count and relate motivated. It is a matter that must be addressed ity agrees with the proposed population policy, to other areas of Uganda. This development is urgently by Government including the poor sal- Agriculture has not been transformed and yet which is a good start. But the World Bank outgrew its economic dicta- likely to enhance trans-ethnic integration. aries of academic staff in universities. Govern- over 70% of the work force is in agriculture. torship and allowed African countries to propose ment must take into account the salary require- Productivity is very low. The unpredictable cli- 80 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 81 Category Name Section Title TRANSPORT Transport SECT ION T HR EE The Government has identified infrastructure as being the key to Uganda’s development needs. Since 2008, infrastructure has taken the lion’s share of National Budget allocations, and trans- formation is increasingly evident in roads, rail and other forms of transport. The road to national transformation is in infrastructure 82 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 83 Name Section Title CategoryTransport Roads: Connecting the Country and the Region Roads and Highways are the Way to National Transformation The road that connects Masaka and Mbarara is a key artery in a farming region that accounts for a big proportion of the country’s agricultural produce. It is also part of the Central Cor- At Independence in The country first invested massively in roads is should take three hours. Kampala to Nebbi- ridor that links to Tanzania, Rwanda, Burundi and Eastern Congo. Photo/Laura Walusimbi starting 1968 and by 1971, it was already boast- Arua took several days. 1962, Uganda only had ing of 1500kms of smooth tarmac. a few hundred kilome- When National Resistance Army seized power in ters of tarmac roads But from 1971 when the military took govern- 1986, papyrus (a swamp water weed) had start- in the development of the country’s transport Airlines), water and railway (Uganda Railways), ment, neglect and lack of maintenance set in. ed colonizing former roads like Nkrumah and infrastructure and systems. The first major ana- buses (Uganda Transport Company) and haulage which were classified The war that dislodged the military government Nasser, due to lack of motor traffic and presence lytical report on Uganda after the country joined (Transocean), to identify solutions to the inef- into three namely; cen- (November 1978 – June 1979) was fought right of large, water-logged potholes. A common prob- the World Bank that was released in November ficiencies in the sector. across the country from the southern border lem facing city motorists was cars to get stuck in 1964, entitled “The Economy of Uganda”, called tral government roads, to the northern border, and all along heavy ar- the mud in the middle of the capital, with drivers for more public investment into the East African Roads remain the most important infrastruc- local district roads and tillery were landing on the roads making pot- begging or paying members of the public to pull regional infrastructural projects, which would ture for transport in the country, connecting the Buganda Kingdom roads. holes, a new phenomenon then. Unfortunately them out. promote better economic integration. The con- remote areas to the highways. If conservatively the country got plunge further into chaos that sistency remained 43 years later, when the 2007 valued at $1million per kilometer, at $20billion lasted seven years during which repairing roads The new government embarked on a crash pro- Country Economic Memorandum called for “an the 20,500 kilometer national road network is were not a priority. The potholes kept growing gramme of repairing roads in the country be- investment agenda for growth focusing on high- the country’s most expensive asset, and it is only larger, eventually eating up entire road sections tween 1987 and 1990. By 1990, half of the road return public infrastructure especially energy fitting that it be well-maintained. In this regard, in the process. network had been re-constructed to a fair con- and transport so as to reduce business costs, in- the Bank supported the creation of Uganda Na- dition. The percentage of fair road surface had crease productivity, and encourage job-creating tional Roads Authority (UNRA). It has promoted By 1986, less than 10% of Central Government grown to 75% in 2003 and further to 85% when private investment.” the development of the Road Fund of the Roads roads in the country were in a fair condition. the country marked its golden jubilee in 2012. By Authority for the maintenance of the network. Driving from Kampala to Kasese should take this time, the national road network comprised In between, in 1983, the Bank compiled and is- four hours if the road is good, but in 1986 one nearly 20,500km, most of it in fair condition. sued Uganda’s Transport Sector Memorandum Besides supporting the establishment of UNRA needed 12 hours in a good car to get there. Kam- at a time when the sector was dominated by pala to Mbrarara needed at least eight hours yet All along, the World Bank has been a partner state-owned companies – from aviation (Uganda CONT. ON PAGE 86 84 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 85 Roads: Name Section Title Transport Category (Left to right) July 1957, pre-Independence construction work on the Moroto-Mbale road in Karamoja, north-eastern Uganda, being inspected by colonial Governor Sir Fredrick Crawford. Photos/DS Archives. World Bank-Financed Road Projects (Opposite page) April 2013, construction work on the Kawempe-Kafu stretch of the Kampala-Gulu highway, a critical part of the Northern Corridor. Photo/Laura Walusimbi No. of kilometers Project rehabilitated/upgraded 163 km (Mbarara-Katunguru road, feeder roads to Uganda Highway Project Lake George and Lake Edward, tea roads in Fort (1967 – 1973) Portal) Connecting the Country Uganda Second Highway Project 665 km of primary, secondary and agricultural roads (Jinja-Bukoloto, Bale-Kayunga-Mabuganyi, Kabale- and the Region (1969 – 1980) Katuna) Uganda Third Highway Project 336 km of paved roads were resealed; 723 km of The World Bank has also been involved signifi- (1984 – 1992) gravel roads re-gravelled cantly in integrating the transport networks Uganda Fourth Highway Project and policies of the countries in the region (1987 – 1994) 84 km (Kampala-Jinja, Mbarara-Ishaka roads) Transport Rehabilitation Project 134 km (Kampala- Entebbe, Mbarara-Ibanda, Kampa- (1994 – 2000) la-Wobulenzi roads) CONT. FROM PAGE 85 the regional corridors - Northern Corridor and Northern Uganda Reconstruction Project and the Road Fund, the Bank provided the institu- Central Corridor - must be prioritized for reha- 91 km (Kafu-Karuma road rehabilitation) (1993 – 1998) tional support to enable UNRA take off and become bilitation and maintenance, while connectivity fully functional. The project also supported the prep- between producing areas and markets has to be aration of Kampala Urban Transport Project, which improved to boost agricultural exports. 900 km (Busunju–Kiboga–Hoima, Karuma-Pakwach– supported the city to attain 70% road upgrade; and Road Development Program Phases 1 – 3 Arua, Soroti-Lira, Kampala-Gayaza-Zirobwe, Kampala improved designs for 7 junctions and for peri-urban It is vital for economic development to ensure (1999 -2008) – Kafu, Fort Portal-Hima-Kasese-Kikorongo–Mpondwe roads to help decongest the city. It assisted in draft- connectivity with areas of production. The es- on DRC border and Kasese-Kilembe roads) ing the Road Safety Policy and supported the prepa- tablishment of connectivity across Uganda’s bor- ration of data on 10,000 kilometers of formerly dis- ders needs to involve regional cooperation. trict roads that were re-classified to national roads. Transport Sector Development Project 255 km (Vurra-Arua-Oraba, Gulu-Atiak, Kamwenge- Beyond its borders, Uganda therefore needs to (2010 – 2016) Fort Portal, Zirobwe-Wobulenzi roads) The World Bank has also been involved significantly negotiate with its neighbors to ensure that roads in integrating the transport networks and policies of servicing the corridors are maintained. This the countries in the region. Most notably, the Bank would entail upgrades of road capacity through North-Eastern Transport Project 400 km (Tororo-Mbale-Soroti-Lira-Gulu road corridor) has financed the development of the one-stop border the addition of lanes to roads with heavy traf- (2014 – 2023) posts aimed at making border crossing in the East fic; the rehabilitation of paved roads whose poor African Community and to South Sudan faster and condition affects the flow of traffic along the easier to bring down the cost of doing business. corridors; and the upgrading of key feeder roads Lake Albert Region Development Project 100 km (Kyenjojo–Kaboya road) connecting producers to the corridors from grav- (2014 – 2019) Moving forward, the national roads that are part of el to paved standards. Source: World Bank 86 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 87 Name Section Title CategoryTransport Roads: Western Milk in Eastern Tea: into a rolling program, with the second phase (RSDP 2) running from 2001/02 to 2010/11 at Infrastructure Budget an estimated cost of $2.28 billion. The RSDP was co-financed by the Government, and various development partners including, Preference is Paying Off the IDA of the World Bank, the African Devel- opment Bank (ADB), the European Union (EU), and the Danish International Development Agency (DANIDA). Other donors included the Nordic Development Fund (NDF), Japanese International Cooperation Agency (JICA), Nor- When a cup of tea is prepared one afternoon in Busia, on Uganda’s wegian Agency for Development (NORAD) and Eastern border with Kenya, there is every likelihood that the cream Department for International Development of served with it has been freshly milked 450km away in the far west UK (DFID). just the previous day. Or take the bus or a long distance truck to any As part of RSDP, institutional strengthening to part of Uganda today, the chances are that you will have a smooth the road sector was supported by the creation of a professional, dedicated Roads Authority. ride on a fairly new road as national highways have been steadily The Uganda National Road Authority (UNRA) revamped or freshly bituminized to international standards. is responsible for the management, operation development and maintenance of the country’s classified road network. UNRA came into be- ing on July 1, 2008, having evolved from the April 2013, the road from Gulu to Nimule, The speed at which goods and people are able to make hours. Travelling the Busunju-Kiboga-Hoima Transport & Works Top Budget Allocations: 2013/2014 National Budget Road Agency Formation Unit (RAFU). RAFU on the Uganda-South Sudan border, via it to the different parts of the country has improved road in the mid-west in 1999 would take a bus was created in June 2000, prior to effective- Atiak, undergoing construction to make remarkably in the recent years in which infrastruc- an average of 7 hours (21 kph). That has been ness of the credit to take over the management this key regional trade route a first-class ture has been given preference over other sectors as halved to 3.5 hours, including stoppages. Legislature 1.9 of large contracts from the Ministry of Works bitumen highway. Photo/Laura Walusimbi part of the National Development Strategy. Other 2.1 and Transport, and improve efficiency of road Studies show that traffic on those roads grew by Agriculture 3 works. Uganda’s network of roads, once the envy of East- seven times, and there was a marked increase in 3 Water & Environment ern Africa, has steadily climbed back to the top af- agricultural and industrial activity in the rural In spite of the big improvement, transporta- Public Administration 3.1 ter decades of crumbling, thanks to commitment of regions that the two highways traversed. tion still remains a big challenge. Regional funds that has seen Works and Transport take the JLOS 4.6 trade is limited, and for a landlocked country lion’s share of the annual budgetary allocations. In The ten-year Road Sector Development Pro- Accountabi-lity 5.2 like Uganda both the Northern and Central cor- the 2013/14 Budget, the Government allocated gramme (RSDP 1) was developed in 1996, cover- Health 7.4 Budget speech FY14 ridors that connect Uganda to coastal regions shs2.3 trillion ($880 million), or 15.2% of the kitty ing the period 1996/97 to 2005/06 and aimed at 7.7 Change from FY13 are expensive to use. Cost inefficiency is exac- Interest Payments to Works and Transport, almost a full percentage providing an efficient, safe and sustainable road erbated by poor governance, organizational Security 8.2 point more than Education, the closest competitor. network in support of Government’s strategic deficiencies, revenue inadequacy, and underin- 8.8 So it has been for about five years running, into fis- objectives of poverty eradication, peace and PSM vestment, all of which have led to deficient and cal 2013/14. safety for all citizens. Education 12.3 dilapidated regional infrastructure networks. Energy 13.8 Ugandan traders face freight costs that are 30% It is paying off. In 1999, travel time on Pakwach- Financing of the 10-year RSDP 1 ($1.5 billion) Works & Transport 18.9 higher than their counterparts in Southern Af- Nebbi-Arua in West Nile was an average of 5 hours. was as follows: Government $769 million; Eu- rica and 60-70% higher than their counterparts -5 0 5 10 15 20 Due to the bad state of the road, even the best vehicle ropean Union $249 million; World Bank $450 in the United States and Europe. For landlocked % of GDP could only average a speed of 26 kph. At completion million; and $32 million from other partners. Uganda, transport costs can constitute up to of the road works, travel time had been halved to 2.5 In 2002, Government transformed the RSDP 1 Source: Ministry of Finance, Planning and Economic Development, Budget Speech FY14 75% of the value of exports. 88 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 89 Name Section Title CategoryTransport Roads: (Left) Traffic on the freshly rehabilitated Mbarara-Masaka highway. Photo/David Sseppuuya. (Above) Construction work on the Kampala-Gulu Northern Corridor road. Photo/Laura Walusimbi to $18.0 million, was approved in 1987. It fi- ting up of the Mt. Elgon Labor-based Training nanced the rehabilitation of 24 km of Kampala- Center in Mbale, and the rehabilitation of 680 A Long History of Jinja road (48 km was financed by the African km of feeder roads using labor-based methods. Development Bank), 60 km of the Mbarara-Isha- The project ended in December 2000. ka section of the Mbarara-Katunguru road, a pi- lot rural roads maintenance program, together By mid-2013, the Transport Sector Development Road Finance with technical assistance and studies for the Project in the total amount of $271.14 million next lending project. The project was completed (IDA: $265 million; DfID: US$6.14 million) was in December 1994. financing the upgrading of Vurra-Arua-Oraba road (92 km), Gulu-Atiak road (74 km) and Ka- Culminates in UNRA The Northern Reconstruction Project credit mwenge – Fort Portal road (66 km). It was also amounting to $98.91 million, of which $34.82 financing technical assistance to UNRA and the From 1998 to 2008 the focus of the Govern- implementation of the project was delayed due million was for the rehabilitation of roads, was Ministry of Works and Transport as well as stud- ment and the Bank was on the establishment of to the difficult political circumstances of the approved in 1992. Projects completed include ies for the follow-on projects. the current Uganda National Roads Authority 1970s. The projects that were completed at its the re-graveling, resealing/rehabilitation of se- The World Bank has been responding to the Government’s Na- (UNRA) and the preceding Road Fund. end in November 1980 include the Masaka-Kyo- lected main roads (457 km); rehabilitation of The World Bank’s focus in the future will be on tera road (44 km), Kabale-Katuna road (66 km), priority feeder roads (270 km) and urban streets road asset management and the efficient use of tional Development Plan to reverse the slowdown in growth by The initial IDA credit for the Transport Sector Iganga-Mbale road (149 km), Kayunga-Sezibwa in the towns of Gulu, Kitgum, Lira, Apac, Soroti, available resources, regardless of the source of addressing transport infrastructure constraints that are vital for was the First Highway Project of 1967, taking up swamp crossing (20 km) and some feeder roads. Kumi and Pallisa. It was completed in December financing. This will involve, amongst others, the $5.0 million to finance the foreign exchange cost 1997. introduction of output and performance-based poverty reduction. A major aspect of the Bank’s support was to of the construction/reconstruction of Mbarara- The Third Highway Project credit, for which contracts, and research in the use of materials answer the Government’s call for support to have a dedicated Katunguru road (113 km), 161 km of agricul- $58.8 million was availed, was approved in 1984 The Transport Rehabilitation Project credit for low cost roads. agency to manage the national roads and an agency to fund road tural and feeder roads, together with technical for carrying out a road maintenance program came up to $80.6 million (IDA: $57.6 million; assistance and detailed engineering design of on the classified road network, institutional GoU: $18.18 million; NDF: $4.9 million) was maintenance. 740 km of roads. strengthening, and implementing a pilot pro- approved in 1994 for carrying out a main roads gram for the development of the local construc- as well as feeder roads maintenance program; It was followed by the $16.5 million Second tion industry. Some 336 km of paved roads were upgrading, re-gravelling and rehabilitation of Highway project that was approved by the Bank resealed, 723 km of gravel roads re-graveled, and selected main roads; rehabilitation of feeder in 1969 for the construction and reconstruction rehabilitation done on the Ministry of Works roads; and providing support to railways and of 665 km of primary, secondary, and feeder Transport Road Training School, the Central institutional strengthening. Projects completed roads; the preparation of a Highway Mainte- Workshop, and seven upcountry workshops. The include the upgrading of Mbarara-Ibanda road nance Investment program; feasibility and de- project was completed in 1992. (65.5 km), rehabilitation of Kampala-Entebbe tailed engineering studies of about 400 km of highway (27.6 km) from Zana to Entebbe; reha- roads; together with technical assistance. The The Fourth Highway Project credit, amounting bilitation of selected gravel roads (194 km); set- 90 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 91 Name Section Title CategoryTransport Roads: The Long Road To a Dense Network connect to district and national roads. There are about 30,000 km of community access roads. Ac- cess roads are predominantly earth surface with Road Network carriage width ranging from 1 to 3 meters. Ac- Density in Africa Unlike most other Sub Saharan African countries, Uganda cess roads are the responsibilities of Local Coun- (selected countries; in km of road per cil III Governments/sub-county governments, has invested heavily in the Road Sector, and especially which are sub-division of district governments. 1,000 km2 of land area) in rural roads. The Government guides the development (Tabulated as Country: Density of all of the entire road network in line with the Road Sector No inventory has been taken on community ac- Roads/ Density of Secondary Roads) cess road condition. The estimated road network Development Program (RSDP), which has two components: of 30,000 km was based on the assumption that • Uganda: 385/ 136 A 15-year National Transport Master Plan being imple- links in the range of 2 to 5 km, and a sub-county • Rwanda: 568/ 72 has 8 to 12 links. mented by the Uganda National Roads Authority (UNRA), • Malawi: 165/ 71 and the ten-year District, Urban, and Community Ac- Uganda has, however, one of the highest over- • Lesotho: 196/ 50 • Ghana: 187/ 33 cess Roads Investment Plan (DUCARIP), under local gov- all road density in Sub-Saharan Africa and the highest secondary road density. In the last 20 • South Africa: 300/ 31 ernments, both rural (district) and urban authorities. years, the Government has made substantial in- • Kenya: 111/ 30 vestments in rehabilitation and maintenance of • Tanzania: 62/ 25 District, Urban and Community Access Roads. • Cote d’Ivoire: 82/ 24 The impact of the investment has been substan- • Nigeria: 174/ 23 tial since the proportion of district roads from fair to good condition was recorded to have in- • Benin: 142/ 21 creased from 15% in 1990 to 65% in 2007, and • Namibia: 77/ 15 Uganda’s road network is about 78,000 km. growing in the proceeding years. • Madagascar: 51/ 11 National roads (also known as trunk roads) are • Cameroon: 72/ 11 10,800 km long, of which 2,870 are tarmac and Budget allocations to districts for roads are • Senegal: 94/ 10 7,930 km are gravel-surfaced. National roads based almost in its entirety on network length. • Mozambique: 61/ 6 connect major towns and districts with one an- Road condition and area of a district do not • Burkina Faso: 39/ 6 other and link Uganda to neighboring countries. explain why some districts benefit more from higher funding than others. At the same time • Zambia: 50/ 5 The paved national road network has also ex- agricultural output and potential do not appear • Ethiopia: 46/ 5 panded. In 1996 only 2,200 km or 24% of the na- to be considered when allocating the road main- • Chad: 27/ 5 tional network was paved. Since then the paved tenance budget in Uganda. • Niger: 13/ 2 network expanded to 2,650 km by 2003, then to 3,050 km by 2008, and to 4,100 km by 2013. Henceforth, the incentive for a district is square- Average: 138.19/ 28.18 The length of paved national roads is expected to ly to increase network length as that determines Median: 82.00/ 21.23 increase to 7,100 km by 2023. The 2023 figure its budget allocation. would represent 37% of projected national net- work of 19,000 km. Estimating agricultural potential using export Source: World Bank parity prices as well as local prices showed for the District roads (also known as rural/feeder roads) 2006 budget that districts with high agricultural are about 27,500 km. This is reducing to 20,000 potential receive too little in road maintenance km due to re-classification and transfer of some grants while other with low agricultural poten- 8,000 km to the national road network. District tial received significantly more. As a household roads are predominantly gravel and earth sur- that is able to produce for local markets or even faced. better for export, is likely to have a higher in- come and therefore is less likely to be poor, con- Community access roads (also called economic necting local farmers, through investments in roads) are small tracks and footpaths, which link rural roads, to local and export markets contrib- communities to social and trading centers, and utes to poverty reduction. 92 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 93 Rail Category Section Title Name Transport & Water: Rescuer ‘Kaawa’ Gives Alternative Water and Rail Route to the Ocean The ‘MV Kaawa’ on Lake Victoria was refurbished with as- sistance from the World Bank The early hours of May 8, 2005, saw the sinking of nearly the whole of Uganda’s entire commercial shipping. That morn- watching the ship sink – it went on one side, came up again, went down, more or less stand- ing, out in the middle of Lake Victoria, the ferries ‘MV Ka- ing upright in a place that was between 20 and balega’ and ‘MV Pamba’ had an unlikely collision, leading 50 meters deep. It was very heavy and it went down with 22 train wagons full of wheat. ‘Kaa- to the ‘Kabalega’s’ sinking a few hours later. There were no wa’ towed ‘Pamba’ back to dock at Port Bell, their human casualties, but the ‘Kabalega’ still lies at the bottom home port situated just south east of Kampala. of the lake. ‘MV Kaawa’, the rescuer, was commissioned in Her adversary, the ‘Pamba’, limped back to dock, “We could not do much other than saving 2012 after extensive refurbishing costing $3.8 as did her rescuer, the ‘MV Kaawa’ which today humans,” says Chabukulu, whose vessel million under the World Bank’s East Africa is enjoying a second lease on life, and so should reached the stricken compatriots about one Trade & Transport Facilitation (EATTF) credit. she. hour after they collided. “In accidents, there The ship now has radar that gives it a full out- are many ideas – use ropes, pull the stern, line of the lake, seeing approaching vessels up to Chief Officer Samuel Chabukulu remembers that pump out the water, and so on. Our first at- 22 nautical miles away; a GPS – Global Position- night very well. He was on the ‘Kaawa’, not far tempt to use ropes failed, as they were cut. ing System – that gives latitude, longitude and behind when he heard the two ships communi- Who would go to the front? Every two min- speed on the ground. The old ‘Kaawa’ did not cating with each other. “’Are you clear of me?’” he utes the ship was listing. People were afraid. have a GPS nor an echo sonar sounder, while the recalls the cry from one. The best was to get movable property onto (Above) The ‘Kaawa’ docked at Port Bell before stricken ‘Pamba’, which still lies rusting in dock, the other ship. People were panicking and refurbishment, and (top) the renovated vessel. only has chart and radar in its Wheel House. The problem, the Chief Officer reckons, was that the ship was tilting more.” Photos/Uganda Railways Corporation the ‘Kabalega’ wanted to alter course, but that and saw that they were far out in the world’s sec- ‘Kaawa’ now boasts a submarine-like lifeboat response was too late, and it run into the other Chabukulu, now a seaman with 22 years of ond-largest lake. The nearest landing was Bukasa ship, and within one hour was taking water. experience, and his crew took coordinates Island, which was some distance away. They were CONT. ON PAGE 96 94 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 95 Category Rail Section Title Name Transport & Water: Ships, Trains and Trucks Optimizing Rail and Water Transport (Clockwise from above) Off-loading cargo 16% of Uganda’s trade is transported using the transportation route could render trade vulner- Northern and Central road corridors, the coun- CONT. FROM PAGE 95 from the ‘Kaawa‘ onto trucks parked on rail/water alternative on this corridor, given the able to unexpected events, as demonstrated by try can benefit from improved connectivity, in train tracks; the ship’s Navigation Room, with capacity for 22 people, and food and medi- lack of services. Apart from the slow rehabilita- events during Kenya’s post-election violence in which she is, for the moment, a leading player. with new fittings including radar, echo so- cation. A sewage treatment plant, the only one tion of the network, since the joint concession 2008. The additional distance involved in the use Improved connectivity will enhance Uganda’s nar sounder, and global positioning system on a Lake Victoria vessel, was installed, as was Uganda-Kenya Railway began operations in mid- of the Central Corridor need not necessarily ren- potential as a transit point between markets in (GPS); the submarine lifeboat; and the an oil separator, making it more environmen- 2000s, the bulk of the wagons operate in Kenya. der it uncompetitive. Factors such as shipping the Great Lakes region and markets and port fa- cargo hold bearing a payload of wheat. tally friendly. Indeed, while merchandises take less than 24 and line connectivity, the availability of return cilities in the coastal areas, and water transport Photos/Laura Walusimbi hours to move from Mombasa to Nairobi, they loads, and short border crossing times are vital makes a lot of sense. Its size – capacity for 1,248 tons for rolling stock, take an additional seven days to get to Kampa- in determining trader references in this regard. or 147 lorry trailers - gives ‘Kaawa’ great lever- la, with water transportation services through In the short to medium term, action must be age to champion water and rail transport. Rail Lake Victoria being very limited. New high-value taken to make rail/water transportation systems transportation can be made even more efficient non-traditional exports are transported out by more viable. if combined with well-developed water transpor- air. However, the aircraft used to facilitate this tation systems. Given the huge untapped poten- transportation arrive half-empty, meaning the With transportation costs almost doubling the tial of Lake Victoria, improving transportation cost of air freight is borne disproportionately by price of transported goods, the development of on the lake by refurbishing wagon ferries is an exporters. On the other hand, trucks are often the railway transportation system makes eco- important measure. Investment now needs to empty or carry less than their full capacity on the nomic sense for traders and consumers. It also be done in public procurement of roll-on roll-off route to Mombasa, meaning that the cost of the makes long term economic sense as the most facilities on Port Bell vessels and load-on/load- two-way trip is borne by importers. The Central viable basis for regional connectivity. The EAC off facilities at Mwanza and Port Bell to ease Corridor alternative could be more competitive. has already decided to install a standard gauge connectivity between water and other modes of railway, with the system extending beyond the transport. This requires cheaper water transportation ser- EAC to other African countries including Ethio- vices on Lake Victoria and more efficient railway pia, Somalia, Zambia and Malawi. As these plans Use of the lower cost rail transportation sys- services to support a more efficient multi-modal progress, the rehabilitation of existing lines will tem has remained limited because the service is regional transport system. At present, only 2% be critical to support regional trade over the slow and unreliable. This results in a costly im- of Uganda’s international trade uses the Central next 5 to 10 years. Uganda is landlocked, but be- balance between import and export trade. Only Corridor. In fact, the dependency on a single ing positioned at the central point on both the 96 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 97 Railways: Section Title Transport Category Name Wider Gauge Rail is thus far are ‘untrained’, so to speak, will see the train chugging through their village, hopefully were considering this option in mid-2013 as a stopgap till full upgrading can be done. most doubling the price of transported goods, the development of the railway transportation Future for the ‘Untrained’ eventually with a wider gauge. Emmanuel Iyam- system makes economic sense for traders and ulemye, the Chief Civil Engineer at Uganda Rail- The line was eventually re-commissioned by consumers. ways Corporation, outlines three initial options President Museveni in October 2013, with a for the 500km Tororo-Pakwach line from a study promise to upgrade it. It also makes long term economic sense as the done under the World Bank’s East Africa Trade & most viable basis for regional connectivity. East Seven children straddle the railway line, but have absolutely no Transport Facilitation (EATTF) credit: The railway is easily the oldest economic project African Community (EAC) Heads of State have idea what a train is. Aged anywhere between four and nine years, in Uganda, having started at the dawn of colo- already agreed, in principle, to install a standard • Full upgrade to a new standard gauge that nial rule back in 1896 at the Indian Ocean port gauge, with the system extending beyond the they were all born at a time when the Northern Line of the Ugan- would cost $913 million. Rift Valley Rail- of Mombasa. Like the contours of the terrain EAC to other African countries including Ethio- da Railway had long ceased to function. ways (RVR), the Private Sector concession- through which it runs, the Uganda Railway has pia, Somalia, Zambia and Malawi. aire, declined this option. had a convoluted journey to its present-day con- cession to a future that should, if it is to survive, As these plans progress, the rehabilitation of For 26 years the line that runs through the Koro had stopped passing there in 1987 when the last • Basic repairs to the line to bring it to decent, see it run on a wider standard gauge. existing lines will be critical to support regional community, a few kilometers south of Gulu town one was attacked by armed rebels fighting the operable standard at a cost of $117 million. trade over the next 5 to 10 years. Then the little in Northern Uganda, was used as a wide gauge Government. Mismanagement and negligence saw it drop boys and girls of Koro will stop being ‘untrained’ footpath for those going to school and for pro- • Partial upgrading at a cost of $450 million. from the premier economic growth vessel of 70 and finally get to see, use, and benefit from real duce-laden bicycles headed to the market. Trains Yet there is hope that these youngsters, who Uganda Railways Corporation and RVR or so years to a peripheral role. As part of the trains. recognition of rail’s renewed role, big parts and (Left) Overgrown and neglected, the Tororo-Pak- functions of the Kenya-Uganda railway were wach railway line that runs through swathes of privatized through a 25-year concession to the Northern Uganda is being lined up for upgrading. consortium RVR in 2005. RVR became the oper- Photo/Laura Walusimbi ator, while Uganda Railways Corporation’s man- date changed to being asset holders/landlords, (Middle) The old narrow gauge at the Kasese ter- overseers of the concession, and the technical minus in western Uganda under inspection by the arm of Government on railways in the Ministry colonial Governor, Sir Frederick Crawford (cen- of Works and Transport. ter, holding hat), in 1957. Photo/DS Archives Currently trains on the Mombasa-Kampala line (Above) President Museveni (holding flag) re- run at 30kph on the old gauge, which is much commissioning the Tororo-Pakwach line in Gulu, too slow for today’s fast-paced economic devel- October 27, 2013. Photo/Presidential Press Unit opment, as well as being unreliable. This results in a costly imbalance between import and export trade. Only 16% of Uganda’s trade is transported using the rail/water alternative on this corridor, given the lack of services. In the short to medium term, action needs to be taken to make rail/water transportation systems more viable. With road transportation costs al- 98 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 99 Category Border Transport Name Section Crossing: Title cesses and information systems to be able to pull goods more quickly across the border,” Zoellick said. “I have worked with President Museveni for nine (Left) August 2009, then World Bank President years starting with the trade topic and I know he Robert B. Zoellick visiting the Uganda-Kenya has been a critical leader in the need to develop border crossing of Malaba. In the middle, in an integrated market for the whole of East Af- yellow, is then finance minister Syda Bbumba, rica and to facilitate transportation of goods and and in grey suit is the then works minister people,” Zoellick said. “There’s a 170-million- John Nasasira. Photo/World Bank Archives person market here and that’s where the future opportunity lies.” (Below) An artistic impression of what the One-Stop Border Point will look like when the Malaba is one of the busiest border posts in the project is completed. Image/World Bank One-Stop Border Concept Receives Presidential Backing region, serving as a transit point by road and The sound of more than 700 heavy duty engines dominates the railway for countries west of Kenya, including ing to some limited extent. Uganda, Rwanda, Burundi, Southern Sudan, and afternoon activity in the beehive that is the Uganda-Kenya the Democratic Republic of Congo. Malaba han- border crossing of Malaba. In a small 10 meters by 5 meters tent on the dles an estimated 53% of all freight destined for Ugandan side in April 2013, a burly but friend- Uganda. The value of all cargo through Malaba ly Kenyan official chatted away with his rather was $1.75 billion in 2007 and $2.45 billion in more serious Ugandan colleague, bent double at 2008. Truck drivers, some patient, others a little more har- countries sit in the same building, possibly the his computer. The tent is a temporary structure, ried, sit in their cabins occasionally raving the en- same office, so that a client completes processes but the idea of working side-by-side is a perma- By mid-2013, the Ugandan side of Malaba was gine as they inch forward slowly in mile-long queues in one go, without having to duplicate them after nent one. clearing an average on 700 trucks of cargo per stretching out as far as the eye can see. They are car- crossing ‘No Man’s Land’ to the other country. day, and 21,000 trucks just importing merchan- rying merchandise on which the economies of five On a visit to the border point in August 2009, dise into the country every month. The One Stop or six Eastern African countries depend. Every extra “The new structure will ensure that Kenyan of- then World Bank President Robert B. Zoellick concept promises to take that to 1,400 trucks a hour, every extra day they spend in the lines will be ficials will be permanently working in Uganda, came face to face with the challenges of regional day, which would significantly boost trade. a cost somewhere. The waiting is a non-tariff barrier and Ugandan officials will be permanently in trade and integration, and discussed with both to trade. Kenya,” says Abel Kagumire, a Uganda Revenue Kenyan and Ugandan authorities on develop- “As a partner of the Government of Uganda, the Authority official. “A vehicle going to Kenya from ments at the border, particularly the joint ef- Bank shall continue to support Uganda’s growth The One Stop Border Concept is meant to ease the Uganda will stop in Kenya once; a vehicle com- forts of the two countries. He called on Ugandan agenda, especially to improve infrastructure that inconvenience that truckers and other users of the ing to Uganda will stop in Uganda once. Customs authorities to take advantage of the opportuni- will facilitate regional integration, ease trade border crossings experience. It will ease the time and Immigration will be next to each other, and ties brought by East Africa’s regional economic and shore up economic development,” Zoellick spent at Customs and Immigration by half, by inte- the officials from the two countries will be work- marketplace. said. “If it has the right infrastructure, such as grating the process that is otherwise currently being ing side-by-side.” efficient roads and railways, then Uganda is well done on both sides of the border. “The Malaba one-stop customs border post gave placed to overcome the hurdles of being land- Even though the infrastructure is not yet up – us a sense of the need to develop roads and locked and promote regional trade, especially The World Bank is funding the infrastructure that Kenya has already made strides with preliminary railroads, but also how the hardware had to be through the Northern and Eastern corridors.” will see the Customs or Immigration officials of both work underway by mid-2013 – the idea is work- combined with the software to improve the pro- 100 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 101 Ex-Finance Name Section Category Minister: Title Insider’s View INSIGHT T HR EE Moses Ali Idi Amin Did Not Foresee and so on, and we became an international pa- riah. So there were a lot of external shocks that affected our economy. Q: Who were the key partners at that time? the World Bank since 1963, we became members when we got our Independence in 1962, and we continued to service the loans that we inherited. The Bank was with us, yes, but really not effec- tively. The Bank had stopped funding projects in 1973. What continued were the projects with the East African Community members and therefore we to share the liability and assets of the Commu- nity and the money borrowed from the World Bank. So for that, I think no member would complain. Uganda could not complain because we got the lion’s share. We didn’t contribute much in terms of projects during this, we were borrowing mon- ey, investing here and there, we had the East Disastrous Impact on Economy When Amin first came to power it was the Brit- borrowed together for East African Harbours, African Development Bank, the Flying School, Telephone House, the bridges in Karuma, Pak- wach. The rest of the investment program, the East African Airways, Harbours, Railways, Com- munication, most of it was between Kenya and Tanzania. So the liquidator also distributed the assets and liabilities according to who got what. Q: Had the World Bank not conduct- ed the liquidation, would Uganda have got anything? Not at all because even when the collapse hap- pened, the property that was here like railway wagons, locomotives, East African Airways and so on, once they went (to the other countries) they never came back. They were taken, owned by the Kenyans. It was actually a very good decision that the World Bank took. In any case they had to be also paid back, I think it is also of interest that they took that decision and they must have known who was responsible to pay because where was the money borrowed from then invested? If you borrow money from the World Bank and you didn’t invest in Uganda, it would become very difficult to ask Uganda to pay. Therefore, I think that was a very good decision not only for Uganda but all member states, and the Bank. Q: How was your experience run- Moses Ali Provides Link Between 1970s Chaos and Later Years of Hope ning the economy on behalf of a head of state who had a very strong Photo/The Daily Monitor personality like Idi Amin? Gen. Ali has served as a senior member of the Governments of President Museveni, in which he is a deputy Prime Minister (left), and of President Amin where he was finance minister Strong personality as he was, he was a human ish who first recognized his Government. Most East African Telecoms, and Railways. So with (above) after the expulsion of Asians (far right). Photos/The Daily Monitor and DS Archives being and he had to co-operate with people, but of the Western World actually recognized Amin these you could not isolate Uganda. Whether the because Milton Obote, the man he overthrew in World Bank wanted it or not the projects con- the most important thing was not only Amin. Q: You were the finance minister in 1971, used to suppress people. But again that tinued till 1977 when the Community collapsed Some decisions the country took, especially the 1970s, a particularly challenging marriage of convenience was short lived because and that marked the end of everything. affecting major issues of the economy, were of Amin’s decision to expel the Asians. Therefore by consultation with the head of state. So he time. What were the key challenges Secondly, another decision was to declare the all those people without replacing them. These what used to be his friends turned against him At the Community’s collapse, the World Bank was a participant, and when he participated in for the economy? Economic War. This was intended to improve the Asians were the middle class who were running so we didn’t have many friends after that deci- came up with proposals of names of experts to the decision-making, it became much easier deteriorating situation, now that the people who most things. sion. be appointed as liquidators; we agreed as Ugan- (to push decisions through) as he had a strong One, as the Military took over Government, the took over Asians’ enterprises needed assistance da to the appointment of the chief liquidator. personality. leader, General Idi Amin shortly took the very se- to boost their business. Again they didn’t suc- It also brought a complete change in the sense Q: Was the World Bank present at rious decision of expelling the Israelis and Asian ceed. But what the expulsion resulted into was that since Independence, the economy had been that time? He was appointed with the concurrence of all the Q: How did you manage macroeco- community. I think even Amin himself didn’t to deny the country the vital services of skilled running well, but suddenly a new challenge was members of the East African Community. He did nomic stability? foresee the impact of that decision. All the same people, those who had been managing the econ- created. The expulsion strained the relationship Yes, actually we could consider the World Bank his work and came up with a report and in fact it was taken in August 1972 and that was it. omy. Now all of a sudden you say, “You go” to with our friends like the Americans, the British in some factors. One, we were big partners of that decision was very vital because he was able CONT. ON PAGE 104 102 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 103 Category Name Ex-Finance Insider’s Section Minister: Title View Idi Amin Did Not Foresee Disastrous Impact on Economy apart. Today is several times better because are now independent. We still have to expand the the economy has grown and the Government economy, the tax base, we need to bring in more has managed the macroeconomic environment industries, a lot of infrastructure. Those are the properly. In the 1970s, the Government was things that will finally make the individual’s liv- too involved in public sector business, the para- ing standard improve, when people earn and eat statals (public business enterprises); we used two or three times a day. But if you are now strug- to have ten parastatals run by Government. gling with one meal a day, you even eat it late so Now, the whole thing is privatized; the econo- that you can sleep, that is not a good economy. my has now boomed because of good policies. Q: If the World Bank had not come Q: Do you think the privatization to our assistance, what do you think would have been good back in the Uganda would be like? 1970s? Uganda would still have existed but whether it I think so because the Private Sector is different would have done as well as it is doing with the from the Government. In Government, people World Bank, I cannot say. But the intervention don’t have a sense of ownership; they say: “This is of the World Bank is very good not only for for the Government”; they don’t feel concerned Uganda but for all other countries too. Its pur- whether it is improved or making profits or not. pose was to start these economies like Uganda. But if it is in the Private Sector, you will not be al- lowed by the boss to contribute to failure. Instead you are fired. If you don’t do what they expect Q: When were you finance minister? you to do, that is it, somebody is there watch- ing you, but in Government they say this is Gov- In 1976-77 before I was kicked out in public in- ernment property. But who owns Government? terest. President Amin’s Policies Were Disastrous for the Economy Q: How exactly did he President (Above) The family of bank bills, the legal tender in the 1970s, carried the portrait of the Q: The other school of thought is Amin kick you out? Did he call, or President. Photo/David Sseppuuya (Right) President Idi Amin, second right in army fatigues, that “they sold public assets, they write to you? mobbed by citizens in Mbarara after a military victory in late 1972, the very season in which Because the world price had gone up. Brazil had are supposed to be ours and so the a shortage and Brazil was the biggest producer. he expelled the Asian merchant class, precipitating economic collapse. Photos/DS Archives Uganda had a chance to cash in, but because we Government has nothing”. He called me and said, “I think you are no had problems relating to the rest of the world, longer a minister.” He prepared me for it be- our coffee was still in the country. A coffee boom I think if Government owned those properties it cause he was insulting me in public every CONT. FROM PAGE 103 impact did the ‘mafuta mingi’ have? around 1976-77 had brought some kind of eco- would not get the taxes. It is better these proper- day, so I wished even I could leave by myself. nomic improvement. Therefore, those people ties are divested and those running them pay taxes They destroyed the economy, but indirectly it around the border wanted coffee and paid more which are used to provide services to everybody. Stability was tied in with the Asians’ expulsion, had challenged Ugandans to face up to the man- to coffee growers who were able to cross with the Q: Didn’t you fear for your life? including those who were producing sugar; the agement of this economy that had been suddenly produce. Some countries exported more coffee price went up and that applied to most of the transferred to them. If you compare Uganda today than they could produce! Q: What has made Uganda move on I did. Really like everybody else because imme- essential commodities. It becomes a problem with other East African countries, there are more and what has constrained it? diately I was fired I went home (to Yumbe, in when the price goes up because of shortages. indigenous business people here than elsewhere Q: Were there no development North-Western Uganda, near the Sudan border). Then black marketeering came in, what used to in the region. This is the unplanned-for benefit. partners that would help? Government policy is good, it has opened up, People cooperated; they came to my home in the be called ‘magendo’ (black market profiteering). first of all bringing the Asians back and giv- evening. They would come with their bows and That also affected the foreign exchange rate. We got some assistance from the African Develop- ing them back their business is a good natural arrows to guard and protect. Q: Smuggling was also a big player. ment Bank, the Islamic Development Fund, the law that has enlightened our reputation in the Q: Asians’ expulsion was character- Kuwait Fund, the Saudi Arabian Fund, the United world; that we are reasonable people of integrity. Q: You didn’t think of going to ex- ized by the famous label, the ‘ma- Smuggling, especially of coffee, added to Arab Emirates Fund, the Arab world, and Middle ile? futa mingi’ (literally the ‘Fat Ones’, the destruction of the economy. In Bugisu, East people. Libya also came to our assistance. (Eastern Uganda), we didn’t buy a single kilo Q: Now as one of the leaders of I thought it was going to be too early; I was wait- figuratively the Merchant Class), of the Arabica coffee, it was all smuggled. Government business, do you think ing to go with everybody since I thought he was which was supposed to have been These people would just carry it across the Q: Looking back at the 1970s and not going to stay in power much longer. I could Uganda still needs the World Bank? the name given to the local people Kenya border and there were suddenly big today, how do you compare the two see that. Why do I run before and not wait for who took over businesses and en- stores at the border built by God-knows-who. periods economically? everybody? terprises, but did not have the Yes, I think we still need the World Bank because Q: Why especially coffee? it was created to assist us. We have not reached requisite skills and know-how. What Economically these two periods are quite far that type of development where we can say we 104 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 105 Name Section Title AGRICULTURE Category Agriculture SE CTIO N F O UR Uganda’s agriculture is growing at a rate of approximately 2.6% per year. The Government’s main emphasis is on increased com- mercialization to increase productivity. Agriculture employs three-quarters of the work force and produces a quarter of GDP. Recent support to the sector has focused on agricultural research and advisory services combining public funding of extension ser- vices with private delivery and control by farmers of the quality of service 106 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 107 Category Name Transforming Agriculture Section Farming: Title Centuries-Old Agriculture Undergoing Reform Agriculture has been the major activity employing the ma- Uganda thus launched the Plan for the Modern- scientists working on various crops. The institute Traditional farming methods like labor- ization of Agriculture, which had seven pillars. having got a shot in the arm from the World Bank intensive tilling with hand-held hoes in jority of Ugandans for several centuries. The country, be- The World Bank supported the program, putting support to NARO, was instrumental in reviving cot- Karamoja, North-Eastern Uganda (left), ing a sum of many communities, brought together people who specific emphasis on the Research and Exten- ton production, which had all but died out in by the will steadily be replaced with mechani- were traditionally cultivators, pastoralists, and those who re- sion Services pillars, better known to the public 1980s. The Bank support also made possible the re- cal capital-intensive farming like the through the National Agricultural Research Or- furbishment of ginneries and provided market for Tilda Rice Ltd. in Bugiri, Eastern Ugan- lied primarily on fishing, with about three quarters still de- ganisation (NARO) and the National Agriculture those who have taken up the planting of cotton. The da (right). Photos/World Bank Archives pending directly on the produce of the land for their livelihood. Advisory Services (NAADS). Institute has also actively developed and promoted and Laura Walusimbi animal draft power technologies for on-farm mecha- But Uganda’s population has been growing steadily with more acreage required to produce the same Since then, several major programs supported by nization. and in 50 years from Independence it rose from 6 amount or even less per hectare. It also called for the World Bank have helped move the country’s million to 35 million. This has resulted in increasing strategies to commercialize small holder agricul- Agriculture Sector forward. NARO, through that NAADS that is responsible for the agricultural ex- pressure on the land, whose quality keeps deterio- ture. support, has acquired the necessary institution- tension function covers the whole country, operat- rating. It is also no longer feasible for pastoralists to al and infrastructural capacity to develop the re- ing in all districts, works closely with NARO’s zonal continue traversing the countryside with their herds, The findings and recommendations assisted the quired agricultural technologies, and has availed research institutes in each of Uganda’s nine ecologi- which increases the incidence of disease and a host Government in the formulation of the Agricul- to the Ugandan farming community improved cal zones. Through these institutes, NAADS helps of other problems, including keeping children out of ture Sector Strategy, which laid emphasis on in- crop varieties, and animal and poultry breeds. farmers access new and improved technologies and school as they herd the animals. Similarly, fishing in creasing the traditional exports like coffee and The National Animal Genetic Resources Centre also gives valuable feedback from the farmers to the the natural water bodies has led to the exhaustion of promoting diversification through introducing and Databank (NAGRC & DB), a sister institu- researchers. In specific areas, the farmers include fish stocks which need to be restored and fish farm- non-traditional exports. tion to NARO, has also acquired the necessary fishermen, fish farmers and bee keepers. ing strengthened. capacity to sustainably multiply and make avail- The strategy also involved improving and adopt- able improved dairy breeds to farmers across the In 1993, the World Bank released its first major re- ing better technologies to increase productivity country. port on Uganda’s agriculture in modern times. The through efficient land use, better breeds, water Agriculture Sector Memorandum (1993) established use, mechanization; Government divesting from The National Semi-Arid Resources Research In- that while agricultural output was rising after the re- agricultural production and marketing state- stitute (NaSARRI), one of the NARO institutes turn of peace to most parts of the country in 1986, owned enterprises; and liberalizing exports and located in Serere, Eastern Uganda for instance, this was taking place with declining productivity, prioritizing research. has also done a big job to empower and train 108 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 109 Category Artificial Name Section Insemination: Title Agriculture Capturing Semen is All in a Day’s Work In the expanses of an enclosure in Entebbe, an Ayrshire bull is on heat and it paces around a few square meters of concrete slabs, waiting to be ‘serviced’. Full grown at 500kg, the brown-and- white bull paws the ground with controlled aggression, and looks all the more fierce with a ring noosed around its nose as herders prepare to relieve it of semen. Some 300km to the west, in the shadows of the half that acreage, but the expulsion of Asians by Ruwenzori Mountains, Apolo Makaru is a happy the Government in 1972 saw the ceding of the man. Leaning on a walking stick that doubles neighboring Indian farmer’s land on the other as a cow-herding cane, he exudes the content- side of the highway, to the Government farm, ment of a farmer who, in the ten years that he consolidating into Rubona’s current vastness. Artificial Insemination Offers Dairy Farmers High Quality Stock has used Artificial Insemination (AI), has seen In 1973-74 the Government introduced Friesian his herd multiply from 12 local cows to 96 cross- breeds on it, but it all went to waste after the bred cattle. Even the low-hanging clouds that 1978-79 war that overthrew President Idi Amin. (Top left to right) The process of securing semen from prize bulls and inseminating heifers at the hug the mountain tops seem to smile at him. National Animal Genetic Resources Centre in Entebbe is a delicate one. (Above) Kabarole dairy The current Government restocked Rubona farmer Makaru has multiplied his stock and prospered through artificial insemination. Photos/ Makaru’s 150-acre farm is nestled on the edges in the late 1980s, and the farm has since been Laura Walusimbi of the Ruwenzoris to the north-west, providing brought under the aegis of the National Breed- a temperate climate that is most suitable for Eu- ing Progamme of the National Animal Genetic ro-stock exotic and cross-breed dairy husbandry. Resources Centre and Databank (NAGRC & Perhaps even more strategically for him is the DB). NAGRC has a symbiotic relationship with fact that, to the south-east, his acreage shares the National Agricultural Resarch Organisa- has also trained staff in AI technics at certificate, creature is a flowerbed and, maybe, the ring in fences with Rubona Stock Farm, the Govern- tion, (NARO), in livestock research, with the lat- Masters and PhD levels. its nose. But Luwagu, the Sire Stud Manager, is ment-owned demonstration farm that breeds ter passing on research findings to the former. relaxed. and distributes improved livestock. NAGRC has also benefitted extensively from Back in Entebbe, at NAGRC’s head office, a ten- the dairy component of the World Bank-funded minute wait has made the Ayrshire a tad more When a smaller-sized teaser bull, to coax the one Today, Rubona Stock Farm sits on 755 acres of East Africa Agricultural Productivity Project aggressive as it paws the ground with greater on heat, is brought into the crushes, Luwagu undulating pastures that roll astride the high- (EAAPP), especially in bolstering the Artificial urgency, but from the relaxed and confident out- springs into action as he puts a rubber artificial way linking the towns of Fort Portal and Kasese Insemination (AI) program that is improving ge- look of Siraj Luwagu, you would not think that vagina (lubricated and warmed to 40 degrees in Mid-Western Uganda. It was not always so. netics through the procurement of liquid nitro- there is urgency, let alone potential danger of Centigrade) onto the erect penis of the Ayrshire Established in the 1960s to improve dairy farm- gen, supporting laboratory setups, and import- an anxious bull on heat. The only thing separat- ing in the region, Rubona was initially on about ing genetic material. The Productivity Project ing a small group of people from the fearsome CONT. ON PAGE 112 110 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 111 Artificial Category Name Section Insemination: Title Agriculture Capturing Semen is All in a Day’s Work Exotic Breeds Improve Ugandan Stock breeding program’s center farms countrywide for some cows, some heifers, and some calves. Bulls are Rubona Stock Farm in Kabarole, Mid-Western Uganda, breeds a variety of ani- CONT. FROM PAGE 111 mals, including Ayrshire and Friesian cows that are cross-bred with local stock their own breeding exercises and onward distri- sold to farmers at subsidized cost immediately after and, in the wink of an eye, has captured enough se- bution to farmers. Rubona in Kabarole district, weaning at 4 to 5 months, while amongst the goats like Ankoles, to produce adaptable high-yielding hybrids. Goats are also raised men from the New Zealand native to breed dozens Nshara (Kiruhura), Ruhengere, Njeru (Buikwe), are does, nannies, kids, bucks, weaner males and in exotic breeds that are then adapted to local conditions of cows many times over. Luwagu completes the ex- Kasolwe (Kamuli), Lusenke (Kayunga), Bulago weaner females, all of which keep faithful company Rubona exists alongside other stock farms spread out countrywide, includ- ercise as effortlessly as stirring sugar in a teacup. (Bulambuli), Maruzi (Apac), and Aswa (Pader) to the cattle. ing Nshara, Ruhengere, Njeru, Kasolwe, Lusenke, Bulago, Maruzi, and Apac, are on the reception end of a highly successful AI which all have advanced AI programs. Photos/Laura Walusimbi The process of capturing semen from bulls for AI is program that NAGRC’s head, Dr. Dan Semambo, Rubona provides the surrounding districts of Ru- one of perfect timing. The intriguing exercise is part has been overseeing for over ten years. wenzori, Kabarole, Kasese, Bundibugyo, and Nto- of the joint GovernmentWorld Bank funded Agricul- roko with genetically-improved animals, performs tural, Technology and Agri-business Advisory Ser- At Rubona the manager, Dr. Moses Amanyire, AI on local farms, and also offers space for tertiary vices (ATAAS) program that ensures that research recounts the different breeds in his stock of 211 and secondary school students to research. And not and extension activity are in tandem, and is a sign of cattle and 150 goats. There are pale-brown Ayr- to forget, the farm also sells milk cheaply to local the successful agricultural research foundation that shires, deep-brown crossbreeds of Ankole and people for onward sale in the community. has been laid in the last 20 years. Ayrshire, black-and-white Friesians, and differ- ent percentages of genetic mixes of the various The semen so collected would then be sent to the breeds. They are in different stages of growth, 112 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 113 Research: Section Title Agriculture Category Name PhD Research Beneficiary Applying Technical and Soft Skills Dr. Beatrice Akello is the Director of National Semi-Arid Resources Research Institute (NaSARRI), in Serere, eastern Uganda. NaSARRI researches on semi-arid crops in the Eastern Savannah, the Kar- amoja Drylands, the Mid-Northern, the Northern, and West Nile agro-ecological zones. By mid-2013 the institution, one of Uganda’s 16 Public Agri- cultural Research Institutes, was undertaking re- search on nine crops: cotton, sunflower, sorghum, sesame, groundnuts, cowpea, pigeon pea, green Research-based Improvements in Agriculture gram, finger millet, and pearl millet. Beatrice Akello (left) is one of a cadre of scientists that have been trained under the aegis of the National Agriculture Research Organisation, NARO Q: When and how did you get interested in The greenhouse (above) at the National Semi-Arid Resources Research Institute in Serere, Eastern Uganda, 1994, which is a two-year Master’s course. My research? is a foundational facility for the extensive work that is going on in laboratories and in the field to improve research topic was “Factors Affecting Incidence crop quality and production. Photo/Laura Walusimbi and Severity of Bacterial Blight of Cotton in I got interested in research in 1988 during my second Uganda”. year at Makerere University. I was studying for a BSc. (Botany and Zoology). There was discussion about At the completion of two year’s work and looking what options to take in third year. I was interested at my research progress, my professional advi- Being one of the younger scientists doing re- discovery was that we had different races of the in Plant Genetics for Botany and Insects for Zoology. sory team were excited about my research work. search in cotton, I was lucky to have got one of disease-causing organisms in different parts of the My lecturers said with those interests I would take a They thought I could build it more for a PhD. My the Masters slots. My enrollment for PhD was country, yet we had always assumed that they were career in agricultural research. It sounded interest- registration was immediately upgraded to PhD. God-sent. It came as a complete surprise to me. the same. ing, since my childhood dream was to pursue Agri- The initial funds were not enough so I came back My supervisors both in NARO (National Agri- culture. It made sense to me then, that Agriculture to Uganda to do most of the work with the funds cultural Research Organisation) and in the Uni- I also sharpened my skills in writing, research meth- had several disciplines. available within the project. Registration fees versity of Reading worked to see that I could ac- ods, statistical analysis and computer applications. I were topped up by the University of Reading. tually use the available funds for a PhD program took short courses in computer applications offered Q: Your doctoral studies were financed by split between the UK and Uganda. by the university to all interested students at no ex- the World Bank. Under which program were Q: Were there other opportunities for tra cost. they funded? your doctoral studies before this? Q: What skills and knowledge did you pick up from the studies? Other soft skills I picked, which we always take for My doctoral funds were largely funded under the granted, include time management, working in a At the time (early 1990s), it was very difficult to Cotton Subsector Development Project financed I picked up a number, both intended and those multicultural environment, and teamwork. These get an opportunity to study for a PhD. I think jointly by the Government of Uganda, the World that came additionally. In knowledge, I set out to were not taught in class, but I learnt them through capacity building of researcher scientists under Bank and IFAD. Field research work in Uganda was understand what factors in Uganda were respon- mentors and peers because they were necessary for the parent ministry was not a priority then. Op- also done with funds supplemented from Agricultur- sible for the incidence, distribution and severity my success. portunities were very few, and they came with al Research and Training Project (ARTP 1) Project. of bacterial blight of cotton. I found out there donor-funded projects. There were also very were environmental factors such as rainfall and Q: Have you been able to apply them? many scientists who were competing for the Q: What was the course, and where did you humidity, genetic diversity of varieties, but also same opportunities. Many scientists who were do the studies? the cultural practices people were using. For ex- An absolute yes. I have used all the technical hard much older than me had not got an opportuni- ample, in some places farmers did not destroy skills and soft skills I acquired. The results and rec- ty for doctoral studies. For example, under the I initially enrolled for an MPhil in Agriculture (Crop cotton stalks after harvest and this contributed ommendations from my PhD thesis influenced the Protection) in the University of Reading in the UK in CSDP Project that funded my studies, there was to the build up of pests and diseases. A unique CONT. ON PAGE 116 provision for only one PhD and two Masters. 114 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 115 Research: Section Title Agriculture Category Name PhD Research Beneficiary Applying Technical and Soft Skills CONT. FROM PAGE 115 started my career, having been posted there in March 1991. change in the approach in managing cotton diseases such as bacterial blight. In developing cotton variet- Q: What other benefits has there been ies resistant to bacterial blight disease, the research for NaSARRI from World Bank Inter- team had to know what strains we were dealing with vention? and had to subject our promising materials to dis- ease pressure to withstand those strains. Bacterial Under different World Bank funded projects sup- blight is not as serious now as it was then. The soft port to NaSARRI, capacity in skills and knowl- skills have shaped my leadership capacity, and I em- edge has been built for a number of stakeholders ploy many of them to date. in aspects of agricultural research, production and marketing e.g. extension workers, farmers, Q: How long have you been the Director agro-processors and students to name but a few. of NaSARRI in Serere? This helps to create demand and use of improved technologies. Under World Bank funding we also I was appointed the Director of NaSARRI with effect received vehicles, laboratory and field equip- from 1st October 2011. By the end of June 2013, I ment, and other supplies needed for research. will have been the Director for 1 year and 9 months (21 months). Q: What message do you have for the World Bank? Q: How long have you worked in NaSARRI? Firstly, I thank the World Bank for the support I I was first posted to NaSARRI in Dec 1993 after the have received personally as a scientist, and then birth of NARO. In Nov 2002, I was posted to Mu- for my organization NaSSARI, NARO, and Ugan- kono Zonal Agricultural Research and Development da as a whole. In our case, we have been able Institute (MuZARDI), where I worked until Septem- to deliver research outputs such as agricultural ber 2011. I therefore have a total of nearly 20 years technologies that have contributed to change in working at NaSARRI. However, six of these years livelihoods of resource-poor people. (1994-99) were spent in and out of NaSARRI either studying away, in the UK (2 years) and at Namulonge On the other hand, many people still do not where I was spending about 75% of the time doing understand how World Bank projects are imple- my laboratory research work. mented. Please provide periodic training for dif- ferent stakeholders on procedures on project Q: Where were you before that? implementation, so that the hitches that some- times cause delays in funds disbursements are Before posting to NaSARRI, I was at Namulonge Ag- reduced. ricultural Research Institute which was under the Ministry of Agriculture then (now National Crop Re- sources Research Institute, NaCRRI). That is where I A sorghum variety crop in a research- er’s hand inside Serere’s greenhouses. Photo/Laura Walusimbi 116 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 117 Section Title Category Name Agriculture Agro-Industry: Agriculture, Private Sector, The forward and backward linkages between farm, factory, college, and consumer are especially evi- dent in the cotton industry in eastern Uganda. Farmers in Luuka District sell to the ginnery at Mutuma, whose processes have expanded fluffing, spinning and processing of surgical cotton. There is also cot- adopted in 1989, and as a strategy to revive cot- ton production and export through increased competition in processing and marketing and Industrial, and ton for export and cotton for processing yarn to produce garments for sale as clothes in retail outlets, improved supporting services, it led to the liqui- while at the university a textile emgineering course widens prospects. Photos/Laura Walusimbi dation of the Lint Marketing Board and the es- tablishment of the Cotton Development Organi- zation (CDO) in 1994 as an autonomous agency. Trade Linkages Two kilometers away, on the edges of the trad- ing center, farmer Muhammad Kakuuku, 45, is all praises for Mutuma. “Before Mutuma started who buy from farmers and, when ginning, em- ploys about 100 people. Mutuma’s linkages, though, could improve all the more. By mid-2013, the private business did not have a relationship with the public institution, buying from us in 2005, we used to get shs200 (8 Mutuma is adding value to the cotton. Apart Busitema University, which is running a World US cents) per kilogram of raw cotton,” says the from exporting up to 5,000 bales of lint to Liver- Bank-financed Millennium Science Project in Uganda’s future and the world’s present come together in an un- father of five, who cultivates 3 acres. “Now we get pool and Singapore, it packs and markets a prod- textile engineering for undergraduate degrees. likely place in the Busoga heartland of Eastern Uganda. In Luuka shs800 (32 US cents)”. In the 2012 season, farm uct, ‘Pearl Fine Cotton Wool’, a surgical cotton The BSc Textile Engineering started in Febru- gate prices were shs1,200 (48 US cents), and the for hospital use. It is, Mugisha insists, “superior ary 2009, and has developed an internationally District there stands an example of what Uganda needs to do to season before the farmers got shs1,500. A high to any of the imports the Ministry of Health recognized curriculum. The 80 students of its achieve true development and the accompanying middle income was hit in 2009, when world prices were favor- brings in.” The wool has been tested by Uganda four intakes have well-equipped computer labo- able and the gate price was at a peak shs3,000 Industrial Research Institute, which also advises ratories, and workshops with carding machines status the country is striving for. (about US$2 at the then exchange rate). on packaging, while orders from National Medi- for fiber alignment and cleaning, a ring spinning cal Stores are being met. machine for making yarn, a rapier weaving ma- Mutuma’s model is to use farmer groups that are chine, and a knitting component that can make then taught how to maximize yield on limited Mutuma’s cotton wool department opened in T-shirts and undergarments. Farming, privatization, industrialization, local mar- Revolution England, with the heavy steel presses acreage. They are given fertilizer, and trained in 2010, and is now producing 4,000 rolls of 500 ket niches, and exports, the five imperatives for the and ginning machines stenciled with that histor- agronomic practices like pesticide use. Mugisha grams per day. The business is hoping to break Busitema University is less than 100km from country’s economic growth, converge in a perfect ically familiar ‘Made in Great Britain’ seal. They says this has resulted in three to four times more Luuka down the Bugiri-Busia mix in a little town deep in Eastern Uganda. In the are nevertheless still functioning more than 60 yield, with many farmers harvesting as much as highway, which should make north, in Lira, the mix is trying and struggling to be years after they were first installed, a time when 700 to 1,000kg per acre. Mutuma is adding value to the cotton. linkages much more efficient. on its feet, and for the little progress made, it has in the country exported lint to the garment fac- Apart from exporting up to 5,000 bales of Luuka an example to emulate. tories of England’s Industrial North, and a pe- In Lira, Jitco-Jinda International Textiles Corp. riod when cotton production had peaked in the Ltd, which bought the privatized Lira Spinning lint to Liverpool and Singapore, it packs Mutuma Enterprises, founded and managed by the 1960s and early 1970s to provide Uganda with Mills, also works with farmers. Seed is distribut- and markets a product, ‘Pearl Fine Cotton elderly but patient entrepreneur Amos Mugisha, is probably the sole reason that Luuka town registers up to 25% of its foreign exchange earnings. ed through a supply system in the cotton-friend- ly countryside that produces a good organic crop. Wool’, a surgical cotton for hospital use. on the national map. Mutuma took a rundown gin- Across Mutuma’s estate, the bright sunroof and But because cotton is seasonal, and the last two nery, previously run by the now defunct Busoga Co- air-conditioning of the spinning factory stand years have seen a depressed world market price, even at 6,000 rolls per day, aiming for 10,000 operative Union, which had evolved into a makeshift in heavy contrast to the dank, dark, cold feeling the factory that upon construction in 1974 was rolls, and ultimately to start exporting to the school and spruced it up, equipped it, and made it of the old ginnery. Here, Mutuma has invested the second-biggest cotton processor in Africa, is Eastern African regional market. produce world-class surgical cotton. $600,000, of which $100,000 was a grant given struggling to function at any appreciable capac- by the World Bank-supported Private Sector ity. A private takeover between 2000 and 2008 With enterprises like Mutuma, the $14m World The old and the new of the global economy is rep- Foundation, in spanking new equipment. The failed and went into receivership, but new man- Bank-funded Cotton Subsector Development resented in Mutuma’s operation. The pressing ma- centerpiece is an automatic plucker for spinning agement is now investing in new machines, get- Project (CSDP) will be vindicated. Conceived as chines in the ginnery look like relics of Industrial and drying, manufactured in China. ting cotton in greater quantities through agents part of the Agricultural Policy Agenda that was 118 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 119 Research: Section Title Agriculture Category Name NaSARRI, 80 Years of Unbroken Research in Cotton The National Semi-Arid Resources Research Institute (NaSARRI), in Serere, on semi-arid crops in five agro-ecological zones NaSSARI’s work has spread from its original mandate of cotton to move on to ground- namely: the Eastern Savannah, the Karamoja nuts, pearl millet, sunflower, sorghum, sesame (simsim), cow peas, pigeon peas, Eastern Uganda, was established in 1932 using funds from taxes levied on Drylands, the Mid-Northern, the Northern, and green gram, and finger millet. The varieties are important for community suste- ginned cotton production. It was an experimental station for ox-cultivation West Nile regions. Currently, NaSARRI, one of nance. Photos/Laura Walusimbi technologies in Teso sub-region, and also served as training centre for staff the 16 Public Agricultural Research Institutes undertakes research on nine crops: cotton, sun- of Department of Agriculture under the Empire Cotton Growing Corporation. flower, sorghum, sesame, groundnuts, cowpea, pigeon pea, green gram, finger millet, and pearl millet. The institute’s other role was to develop varieties for in millet and oil seed. The institute through Under ATAAS, the Government-founded and erous 1,700 hectares of land, of which 532 are the cotton growing areas that feed the cotton indus- those years became the center of sorghum and financed and World Bank co-funded Agricul- under cultivation and research. It also has a golf try in Manchester, United Kingdom. millet research for the East African Community tural, Technology and Agri-business Advisory course and an airstrip, though both are not func- till 1977 when the community collapsed and the Services program that ascertains that research tioning. Research expanded when the ‘black arm’ disease station was transferred to the Sorghum & Millet and extension activity work together, NaSARRI threatened the cotton industry. By 1958, the ‘black Unit of the Office of the President. has been equipped with two laboratories, one of A three-year $249,984 grant from the World arm’ had been brought under control, but soon after them a plant pathology lab that was equipped Bank-funded Millennium Science Initiative en- that there was another attack by the American boll In 1992, Serere Research Station became one for culturing, a greenhouse, a confined trial site abled some of its 22 scientists and 46 support worm, prompting diversification of research from of the six National Agricultural Research Orga- for biotech-modified crops, and an experimental staff to research into groundnuts, ending in cotton to sorghum, which is an alternative host for nization (NARO) research institutes and it was house. ATAAS has also aided Serere’s human re- December 2012. Structural and technological the boll worm. Teso region was also vibrant in live- named Serere Agricultural and Animal Produc- source base, with two PhDs, including the Direc- transformations are being made through fund- stock keeping leading to research into animals. After tion Research Institute. The 2005 National Ag- tor Beatrice Akello’s, together with a number of ing from the Government of Uganda, the World independence in 1962, new concerns like food securi- ricultural Research Systems reforms renamed Masters degrees. Bank, and others donors such as ICRISAT, CRSP, ty, income generation and export earnings took cen- it National Semi-Arid Resources Research Insti- AGRA, USAID, McKnight, and Melinda and Bill ter stage, leading to further expansion into research tute (NaSARRI) with mandate to carry research NaSARRI’s Serere operation stands on a gen- Gates Foundation, among others. 120 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 121 Name Section Title Category Agriculture NAADS: NAADS Takes Extension (Left to right) Semi-mechanized work on a tea plantation in Western Uganda; NAADS’s Executive Director Sam Mugasi. Photos/Laura Walusimbi, NAADS Secretariat Services Countrywide NAADS, the National Agricultural Advisory Services, is central to so when they harvest, they have enough to eat certain disease affecting mango farming. These Uganda’s strategy to modernize agriculture. The Executive Direc- and take to the market. But they also pay back households act as demonstration sites where tor, Dr. Samuel Mugasi, explains: part of the seed that we then distribute to oth- parish farmers can come and learn. The second ers. The other categories are the market-orient- objective is to multiply seed and other planting ed (15-20%) and the commercialized farmers material. For example, you know cassava faces Q: Where is NAADS? (5-10%). What we aim to achieve is progression many diseases. NARO has come up with some vices; you need a vibrant agriculture extension for food security farmers to gradually progress tolerant varieties that can resist some of the dis- NAADS covers the whole country. We are present system to develop agriculture because farmers and develop into market-oriented farmers, then eases. So if we support farmer X with this toler- in all the 111 districts as well as Kampala City and need to be provided with skills and knowledge to the market-oriented farmers also progressing to ant variety, then what we are doing is to first of all sub-counties. We also have presence at the zone be able to modernize. We are now seeing a grad- become commercial. all communicate to all farmers that we have this level. Uganda has been categorized into nine zones, ual transition from subsistence to market-driven tolerant variety and they know that it’s available, each with a NAADS coordinator, to create an inter- and commercialized agriculture. We preach that Q: What happens in the field? and it can be planted, and it can survive. The face with National Agriculture Research Organisa- farmers need to produce for the market and to third objective is that the farmer that we have tion (NARO) to ensure linkage between NARO and see agriculture as a business to be able to earn an Each district has a budget but of course with supported will help us with part of the harvest farmers. There is a district NAADS coordinator who income and to invest in it and assure them that the amount of money available to us, we can and then we distribute the cutting materials to oversees district implementation, then each sub- agriculture can reward. only support a few and these few are to demon- other farmers. NAADS is not in the business of county has a NAADS coordinator and two agriculture strate. For the food security farmers, we are able distributing inputs because that’s for the private service providers, one of them providing services for Q: How do you fulfill your mandate? to support 35 households per parish. These are sector. NAADS just supports demonstrations to the crop sector and another one for the livestock very few households in a parish; some parishes facilitate learning. sector. For districts that have specialized needs like Annually, we have a budget that we provide to can have on average over 200 households. The fisheries, there is a fisheries officer. If the specialized the local governments to support all categories inputs we are giving out are not just handouts. Q: How has NAADS developed? need is bee-keeping then we have somebody special- of farmers. The lowest category are called food They should not be perceived as handouts be- ized in entomology. security farmers (about 60-70%), who have not cause NAADS is not in the business of distrib- The first phase is when it was launched in 2001. yet started producing for the market, and whose uting handouts. The inputs are to demonstrate Phase 2 started 2010-11 but now under a proj- Q: What is your mandate? immediate need is to have enough to feed their new technologies, for example a new variety of ect mode called the Agricultural, Technology families. A modest package enables them to ac- maize, rice, a new breed of livestock or even an Our mandate is to provide agriculture extension ser- cess seed for planting but also help with pricing, agronomic practice, it could be how to manage a CONT. ON PAGE 124 122 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 123 Name Section Title Category Agriculture NAADS: Poverty to Prosperity: A Citrus Farmer’s Fruitful Harvest “I am Ezekiel Etune, 51, a resident of Abarilela village, Soroti District, in Eastern Uganda. Soroti is one of the districts that suffered the devastation of frequent cattle raids by the Karimojong, and as a result of the raids, not many people were willing to settle and concentrate on farming even when they owned huge chunks of land. For so many years, the residents in my village were hopeless and depended on World Food Programme hand- outs because of the uncertainties of whether they would be able to en- joy the fruits of their labour. The story changed with the setting up of a NAADS office in Soroti District. With more than 20 acres of land, upon the advise of NAADS I chose to venture in citrus fruit farming because, even if the Karimojong attacked, they would not uproot my orange trees unlike cattle, which they would always steal. I had not the slightest idea in citrus farming but received training from the District NAADS Extension Officers. “In 2005, I harvested five bags of oranges and sold each bag at shs30,000. Instead of spending my profits on entertainment, I used the profit to spray my fields, weeding and adding manure. In 2006, I harvested 70 bags of oranges from the 300 trees I had planted the previous year and sold each bag at shs30,000. I did like the previous year by re-investing in my field to spray, weed and add manure to the fields. In 2007, I harvested 200 bags and sold each bag at shs30,000; that earned me shs6,000,000. Since then, Healthy-looking leaves that need a tender my profits have been increasing. touch, and good orange fruit harvested in ‘Distributing inputs is not Ezekiel Otune’s orchard that has benefitted So the future of advisory services in Uganda is that extensively from NAADS district extension as farming improves, as we see this transition from “As of today, I have replaced my grass-thatched hut with a permanent work. Photos/World Bank Archives subsistence to market-driven, we would like to see house, all my 12 children go to boarding schools in town and I have also NAADS’ core mandate’ an increased role of the Private Sector in providing expanded my farming by venturing into poultry so as to widen sources of extension services. Right now the Government is income. A balanced diet is something I can also attest to as I have enough the main provider because our farmers cannot meet food from my fields. The NAADS programme rewarded me by making me the costs. But we anticipate an evolving Agriculture a model farmer and donating a tractor to me. I have trained over 100 Sector where most of our farmers can move to be market-driven farmers and we hope that they will be farmers in Soroti District in citrus farming and I hire the tractor to other able to pay for the advisory services. farmers and also earn from it. One major thing that I have learnt over the years is to keep proper records of all the things I do.” CONT. FROM PAGE 123 We are already seeing this in the livestock sector; vet- the biggest chunk of this money and the World erinary services have almost been fully privatized. and Agri-business Advisory Services (ATAAS), Bank is the main development partner. Even the farmers at the lowest level in the Livestock financed by the Government of Uganda and Sector pay for services. When a vet visits a farmer, other development partners including the World Q: You have had quite a past. What is the farmer pays for the vet’s services, and for acari- Bank. What is unique about ATAAS is that it is for the future? cides (parasite-killing chemical). The Livestock Sec- jointly implemented by NAADS and NARO to tor is almost fully privatized in terms of veterinary make sure that research and extension work to- NAADS has been perceived as an agency for dis- services and we hope that as we move to the future gether. tributing inputs and indeed if you are careful we see increased privatization of advisory services enough to listen to the criticisms from the pub- in the crop sector, so NAADS now as a government The criticism we have had in the past was that we lic, the complaints are mainly to do with supply agency plays only the role of regulator. have a lot of new technologies, and a lot of in- of substandard inputs, late deliveries, and cor- novations but these technologies never go down ruption in the distribution. Indeed we can still Q: How do you see the World Bank assisting to the end-users who are the farmers. And also improve in that area because it not our core in the future? there was no clear feedback from the farming mandate. community into the research system, to make Of course the World Bank will continue to support us sure that the farmers’ needs are incorporated Otherwise our mandate is to provide agro-ad- in streamlining agricultural extension services. They into research. ATAAS wants to strengthen an visory services and support extension services will continue to provide us with policy guidance and extension-research farmer linkage that responds because in the world over, the provision of ad- funds that will help us extend agricultural advisory to the farmer’s needs. Government contributes visory services is increasingly getting privatized. services. Ezekiel Etune in his prospering orchard. Photo/World Bank Archives 124 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 125 Category Name Ex-Finance Insider’s Section Minister: Title View INSIGHT FOUR 5-year moving average of GDP Growth and Total Factor Productivity(1960-2000) 10.00 Jehoash 10.00 5.00 0.00 5.00 (Left) The World Bank’s single -5.00 biggest influence on the Ugan- dan economy has been the rate Mayanja Nkangi -10.00 0.00 of growth of GDP, according to 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 -15.00 Nkangi. Growth trends show positive changes from 1986, % -20.00 when the Bank re-engaged fully -5.00 -25.00 -30.00 (Below) A wardrobe in a Ugan- -10.00 dan home full of imported Structural -35.00 shirts, which warrants import- substitution with the develop- -40.00 ment of local industries. Photo/ Adjustment Was -45.00 TFP growth 5-yr m.a of GDP growth -15.00 Laura Walusimbi Great, Though Source: World Bank Country Economic Memorandum, 2007 Not Free Trade nesses. The message was, “Government, get out of investment and trade, and stick to adminis- through their policy advice in developing coun- tries, and also through development funding. tration.” We had even started Barter Trade in 1986 – exchanging our produce for other prod- At that time much more than now, Uganda need- ucts and services. But you won’t find an econo- ed investment particularly for industrialization. All developing countries’ key challenge is to raise mist supporting barter trade because barter re- And of course had it been possible, in agricul- the real income of their people. They must im- stricts exchange. This is why money as a unit was ture. They could have been stronger in invest- prove citizens’ welfare through increase of the introduced because money is convenient to hold. ment, giving us more money to help capitalize country’s GDP. But how do you raise GDP? By Ugandans were hurt by the adjustments. For in- these factories. They could have afforded it. increasing productivity! But Uganda for long stance, the cooperative movement ceased to ex- did not have investment banks (to underwrite ist, and there were job losses. When the Coffee They could also have increased on advocacy for productivity efforts). The Uganda Development Marketing Board was dismantled coffee farmers developing countries in international fora. Take Bank was not well capitalized till the World Bank were discouraged because they used to be given a taxation policy. Uganda currently has got one and the IMF came in. standard price. Never mind how much they were factory, Phoenix Logistics, making shirts and getting at that time. Then they would grow their if you look at the statistics, about 90% of the The earlier development strategy (from the cotton or coffee without worrying about the clothing we wear comes from overseas. 1950s to the 1980s) was that the Uganda Devel- price. We were prevailed upon to dismantle the opment Corporation were charged with facilitat- marketing boards. But I don’t think SAP could The question is, Why? Yes, the imports are ing the industrial and economic development of have been administered any differently. cheaper, but when will Uganda textile industries the country by promoting financing, manage- develop? These are the issues because for a facto- ment or establishment of strategic interests in Without the structural adjustment, I think ry to attain economies of scale, to grow enough commerce, mining, and industry, thus spear- growth would have been slower. We needed a and produce enough to reduce costs of produc- heading development, with Coffee Marketing sense of direction, and also needed development tion, it needs to have a market but if those fac- Board and Lint Marketing Board as sector lead- funds. tories in the developed countries export here be- ers. The Government would stabilize producer cause of free trade policies, you don’t have tariffs and market)prices. We had to accept a new fiscal policy. For devel- to control trade, then you undermine the local Photo/The Daily Monitor opment of the Private Sector, you need to en- industires. Jehoash Mayanja Nkangi, Minis- as Katikkiro (Prime Minister) of The World Bank talked us out of stabilizing com- courage investors, don’t overtax them otherwise ter of Finance, Economic Plan- Buganda from 1964 to 1993, and modity prices with parastatals (state enterpris- they won’t come. We should have international trade policies that es). They said, “Let the Private Sector do it”. Poli- favor developing countries, whose industries ning & Development 1992-98; variously as justice, finance, la- cies were designed to free up the Private Sector, Was the policy of free repatriation of profits have not attained full capacity. But what is hap- Minister of Economic Planning bor, and economy minister. By but I think they overrated the entrepreneurial good? Yes and no. If you don’t have enough capi- pening now? When will this factory of ours glo- 1989-1992; Minister of Com- mid-2013 he was chairman of capacity of Ugandans. There are not many indus- tal in the nation, you want to encourage people balize? trialists/entrepreneurs like James Mulwana and who have got the money to come here, but if you merce 1962-1964. the Uganda Land Commission, Gordon Wavamunno. The problem with para- are going to shut the doors when they have come We have to make sure that our policies help us At 80 years of age, he is prob- completing 51 years of continu- statals was that they had been put in the hands here they won’t come tomorrow. It must be judi- to grow. If you got a young person aged 10 and of civil servants, not business managers. ciously done. you go and run in a cross-country race, who will ably the longest continually- ous service at the top, witness- win? You can’t get young people and old ones to serving senior figure in public ing and influencing Uganda’s The World Bank, in the Structural Adjustment The World Bank’s single biggest influence on the run the same race. So similarly they should have life in Uganda. He also served development. Program (SAP), gave prescriptions especially Ugandan economy has been the rate of growth economic laws, which are in favor of developing regarding the dismantling of Government busi- of GDP. Over time, the World Bank was critical countries. 126 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 127 HEALTH Health SE CTIO N F IVE A major part of the national strategy is to bring medical services into communities through tiered health centers. Together with Development Partners, the Government has been striving to im- prove the competence of staff, provide adequate funds for op- erations, maintain existing infrastructure, rehabilitate selected high priority facilities, reduce infant and maternal mortality, fight pandemics like HIV/AIDS, and combat the occasional outbreak of disease epidemics that threaten public health 128 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 129 Reforms: Health Health is Undergoing October 5, 1968, Washington DC: The In- Slow and Steady Health Sector in Uganda. It was planned to carry to-child transmission still a major problem, making Uganda Health Systems Recovery ternational Development Association (IDA) out urgent rehabilitation and equipping of se- Uganda possibly the only country in the world with makes a $3million credit available to Ugan- lected health-care facilities; to build a hospital in increasing new cases of HIV infection, a new men- Strengthening Project da. (Seated left to right) Mr S. Othello Cole- Rakai District to address HIV/AIDS; to strength- ace has been added. ‘Boda-boda’ (motorcycle taxis) man, Executive Director of IDA for Uganda; en preventive health programs through health accidents are the new health menace. It is like a no- The $144.3 million Uganda Health Mr Erifasi Otema Allimadi, Uganda’s Am- education and community activities; and to im- win situation with health service delivery in Uganda, bassador to the US; Mr. Lawrence Kalule- prove the long-term effectiveness of the health so different partners including the World Bank have Systems Strengthening Project Ssettaala, Uganda’s Minister of Finance; At Independence in 1962 Uganda had superb health infrastructure by care system through institutional development been upping their participation in the struggle to de- (UHSSP) of 2010 - 2015 was designed Mr J. Burke Knapp, Vice President of IDA; African standards. The New Mulago Hospital was commissioned around and improved internal efficiency. The project liver more and better quality health services to the to “deliver the Uganda National and Mr C.M. Kabenge, Secretary and Chief the same time and continued offering excellent training facilities was later modified to provide urgent support Ugandan public. Minimum Health Care Package to Officer, Uganda Commercial Bank. Photo/ to mitigate the effects of the AIDS epidemic, to Edwin Huffman-World Bank Archives. for the Makerere University Medical School and different colleges for take account of changes in the scope of physical To maximize the benefits from the limited health re- Ugandans.” The first component is health professionals including nurses, midwives, and physiotherapists. rehabilitation. sources, the Bank’s studies in the 1990s were used to improved health workforce develop- (Above middle) The Ministry of Health develop the Uganda Minimum Health Care Package ment and management. The second headquarters in Kampala was built with Dr. Patrick Kadama oversaw the FHP, and was to inform the development and implementation of is the improved infrastructure of a $4.6 million credit under the District also the coordinator of the $66 million District all the country’s health delivery systems and strate- The first post-independence Government moved to strain on the health facilities – HIV/AIDS. It was Health Services Project that followed the FHP. gies, defining what can (and should) be offered and existing health facilities. Emphasis Health Services Project. Photo/David Ssep- puuya quickly build, with IDA funding, 20 first-class refer- a new disease for which there was no knowledge, He says of the FHP, “It was designed to reha- from where. is on renovation of selected health ral hospitals, one in each of the country’s districts and, with its near 100% fatality rate then, it hit bilitate the infrastructure that had been rav- facilities; provision of medical (Right) Nurses doing the evening round in then. All these public health facilities were coming the country very hard. The new president, Yow- aged during the decades of civil turbulence; to Since HIV was the biggest threat to the nation’s equipment; improved capacity for the Women’s Ward of Jinja Hospital, in to join the existing ‘mission’ hospitals that were eri Museveni, had sent several military officers strengthen the program delivery; and thirdly it health from the 1980s, the World Bank developed a eastern Uganda. The ward is lit and heated much older, having been built by religious bodies at to Cuba soon after taking power, but the phone addressed the efficiency and management of the $73.4 million Sexually Transmitted Infections Proj- operations and maintenance; and by the World Bank-funded Energy for Rural the turn of the century, and the few public hospitals call he got from President Fidel Castro was not system. The highlight was the establishment of ect (STIP) to sustain momentum and strengthen the strengthening the referral system. Transformation solar power project. Pho- built in the 1930s and 1950s to service the British about their progress in training. Rather it was the awareness program; this was the only weap- control of AIDS and other sexually transmitted infec- The third component is the im- to/Laura Walusimbi colonial authorities in Entebbe, Jinja, Mubende, Ma- about their sero-status with those testing posi- on against AIDS at that time. I can safely say it tions as part of the country’s response to the severe proved leadership, management, saka, Soroti, Masindi and Gulu. The national popula- tive constituting an alarmingly high proportion. did well at the time.” impact of the HIV/AIDS epidemic on the general tion was not so high, totaling 6 million, and services Adding the scientific Cuban assessment to what population and on the economy. This came at a time and accountability for health service were generally adequate and free of charge. Still at he was also observing on the ground, Museveni In the Project’s Health Education and Communi- when funding from the Global Program on AIDS of delivery. The fourth component is the public hospitals there was a ‘Grade A’ wing for se- immediately decided that the entire population ty Activities component, support in the form of the World Health Organisation - that had provided the improved maternal, newborn nior civil servants, Europeans and wealthy Africans had to get immediately sensitized, whether re- subsidized newsprint was given to two newspa- significant support between 1987 and 1992 to the and family planning services. On who could pay to avoid mixing with the masses. sources were there or not. But the effect of a pers to increase circulation of the messages: the National AIDS Control Program - was running out. high prevalence of HIV was to strain the health ‘New Vision’, an English daily newspaper which STIP was to focus specifically on sexually transmit- October 29, 2013 the Government So strong was the health infrastructure that it gen- facilities because almost all the hospital beds circulates widest, carried health messages regu- ted diseases and HIV interventions, and was com- signed contracts for the renovation erally survived through the military regime of the were being taken up by ailments made grievous larly, while ‘Munno’, a local language daily also plemented by the District Health Services Pilot and of nine regional referral hospitals of 1970s, though many experienced doctors lost their by the peoples’ HIV-positive status. published messages before it closed down due to Demonstration Project, which was intended to sup- Mityana, Iganga, Kiryandongo, Anaka, lives or fled the country. Real breakdown started in financial problems. port a broad set of health sector reform initiatives, the late 1970s and continued for three decades. The First Health Project (FHP), inaugurated on including the rehabilitation of the health infrastruc- Nebbi, Moyo, Entebbe, Nakaseke, January 11, 1989 and closed on March 31, 1996 But two decades later, on top of new cases of and Moroto under Phase 1. Phase The 1980s brought a new problem that put a severe was, at $42.5 million, the first IDA credit in the HIV infections that are increasing, and mother- CONT. ON PAGE 132 2 would cover Mubende, Masindi, Kawolo, Bugiri, Itojo, Apac, Pallisa. Buwenge, and Bukwo hospitals. 130 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 131 Reforms: Health Health is Undergoing Slow and Steady Recovery, but Challenges Remain... (Above) The complex at Kiry- CONT. FROM PAGE 131 dibugyo read like the map of Uganda, for they andongo Hospital in North- were established in the entire geographical Western Uganda, one of 20 ture. spread of the then 20 districts of the country, first-class referral hospitals with construction completed in a record two built with an IDA credit in the The $50 million Uganda Multi Country HIV/AIDS to three years. late 1960s Control Project of 2001 – 2006 supported Govern- ment in achieving the National Strategic Frame- At Kiryandongo the theater is amazingly im- (Right) A baby being weighed work goals of reducing the spread of HIV infection; maculately clean. The staff there is doing their in Mbale. Emphasis is being mitigating the health and socio-economic impact of best to maintain essential hygiene, and yet placed on child and mother HIV/AIDS at individual, household and community the equipment therein is broken. The suction health at community level. levels; and strengthening national capacity to re- machine looks new, and yet it has not func- Photos/Laura Walusimbi spond to the pandemic. It had three components: tioned for three years. The sterilizing machine Nationally Coordinated Initiatives, District Led Ini- is old, and jerry cans supply water to a theater tiative, and Community HIV/AIDS Initiatives. which hosts as many as 20 surgical operations a month. The water mains has been down for Later, the World Bank’s $130 million Uganda Health almost too long for anyone to remember; in Systems Strengthening Project was launched in the wards dirty mattresses hang in dank testi- 2010 (to finish in 2015) to help development of mony of their former worth. The hospital staff the health workforce improve health infrastructure have to be creative in their improvisation, and through renovation of selected health facilities; pro- here the charcoal stove burns bright in spite vision of medical equipment; improving capacity for of its hazards - ‘sigiris’ are environmentally operations and maintenance; and strengthening the unfriendly for they use charcoal from wood referral system. fuel, and are a health threat from the smoke they emit. Many of the hospitals are however in poor state. Take Kiryandongo, one of a network of 20 referral The World Bank noted, at the end of First hospitals built with an IDA credit that became effec- Health Project in January 1997, that, “Except tive in 1969. The 20 hospitals of Nakaseke, Bugiri, for some minor maintenance being under- Iganga, Pallisa, Atutur, Apac, Kiryandongo, Itojo, taken by the equipment workshop at Mulago Bushenyi, Kagadi, Kawolo, Kayunga, Kali ro, Budu- (National Referral Hospital), visits to sites da, Nebbi, Yumbe, Abim, Anaka, Gombe, and Bun- CONT. ON PAGE 134 132 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 133 Infrastructure: Health 1989 to 1996, “Expenditure on primary IV for use in renovation and construction; designing Health is Undergoing health care rose from 25% to 32% while that spent on hospitals has declined from 70% to 58%.” and finalizing the Client Charters for the Ministry of Health applicable for different levels of healthcare to enable the public be informed of available services and Slow and Steady Recovery Part of the challenge comes from juggling scarce resources. With a lot of investment channels for handling different issues. The project also helped roll out the Human Resources for Health Man- agement Information System in 70 districts linked to but Challenges Remain going into primary health care and the the Ministry of Health, the Public Service Commission establishment of health centres in the de- and the (health) professional councils. It also helped volved structure – Health Centre I (village hospitals to start conducting maternal and perinatal (Clockwise from left) A sterilizer being health teams), HCII (parish), HCIII (sub death audits. CONT. FROM PAGE 132 heated on a charcoal stove; A non-func- county), HCIV (county/constituency) – tional sterilizer unit in the theater; Bro- there is less for the HCV (district general The fight against HIV/AIDS has been a particular revealed that no remedial maintenance was being carried out on ken down facilities including a water- hospitals) to take. beneficiary of the efforts to strengthen the country’s the newly completed or rehabilitated buildings. This is mainly be- less ward, non-functional toilets, and health systems. For instance, the Rakai Hospital. Un- cause increases in public funding to health have not been as high a grounded ambulance at Kiryandongo Some of the early but fundamental re- der the First Health Project, approved in 1988, a key as expected. Most of the health facilities are raising up to 10% of and Kagadi hospitals. Photos/ Laura sults of the World Bank’s $130 million objective was the proposed construction of a 100-bed their non-wage recurrent expenses through user fees. An effort Walusimbi Uganda Health Systems Strengthening hospital in Rakai district. However, in its stead, a new has been made to set aside 20% of fees collected for maintenance Project project were the standardization health center was built in Rakai and five additional of facilities.” of designs for all levels of public health health centers were rehabilitated. The health center in Dr. Kadama led the District Health Services Project care facilities at Health Centers II, III and Rakai was finished in 1996 and is referred to by pa- The Bank also noted that in the period of the First Health Project, tients as the district hospital. The redirection of funds was justifiable because a nearby NGO hospital was ex- panding to a 100-bed capacity. This decision was made in consultation with the district and was in line with district policy. Dr. Patrick Kadama was at the center of it all. He com- pleted the First Health Project, and was also the co- ordinator of another Bank-funded initiative, the $80 million District Health Services Project that followed. He was also to serve as Commissioner for Health Plan- ning in the Ministry of Health. He talks about the strategic re-orientation of health services in Rakai, “The main hospital was reformed to a smaller hospital and then satellite hospitals in each of the counties. Now this started a new model of ser- vice delivery that we know today. I think you call them Health Centre IVs, instead of building big hospitals; we built slightly smaller ones so that you greatly improve access to hospital services within the community.” The First Health Project was pivotal to healthcare in Uganda at the start of the NRM rule. “It kicked off rehabilitation and reform of the health system. So apart from having a complete review through what was called the Policy Review Commission, headed by Prof. Raphael Owor, it began to implement. It initiated new ways of fighting the AIDS epidemic by the health education program. Health educators were by then not known in Uganda; this is a team that we began to train in the early 1990s who went out and managed the AIDS epidemic without the drugs we have today”, says Dr. Kadama. Veteran Kadama, who went on to work at the World Health Organisation in Geneva as systems advisor un- til retirement a few years ago, believes that Uganda’s health system would struggle without World Bank support. “I would expect that there would be hard times if that source of funding was withdrawn. You must remember that most of the money from the World Bank comes as credit so it is actually govern- ment money, but it is a source for government that government values a lot. In respect to the First Health Project in particular, had the World Bank money not been there to undertake the interventions, we could have seen a different path to things like controlling the spread of HIV/AIDS.” 134 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 135 HIV/AIDS: Health (Far left) The Uganda AIDS Commis- sion’s headquarters in Kampala was constructed under STIP. Photo/Laura Controlling AIDS and Walusimbi (Left) STIP implementor Dr. Peter Sexually Transmitted Diseases Nsubuga. Photo/David Sseppuuya (Above) Condoms have been central to controlling HIV/AIDS Dr. Peter Nsubuga is a consultant, and administered a pro- for most of the managers in Health Centre gram agreed upon between the Government of Uganda and All 45 districts developed implementable HIV/ and drugs. This was the first project under which HIV IVs, district level hospitals, regional refer- the World Bank, the US$73.4 million Sexually Transmitted In- AIDS work plans, and awareness went up. drugs were procured by the Ministry. Massive vol- ral hospitals and even higher up. fections Project (STIP). Knowledge had lagged a bit behind. Condom umes of condoms and a machine to test them were use really increased. The response to HIV/AIDS procured. Finally, CD4 testing machines, which are A key focus is family planning, and we are through STIP was decentralized and the imple- used to measure the degree of viruses in the blood, going to provide a lot of family planning mentation of activities was not from the Minis- were procured. supplies because Uganda is one of the most STIP Achievements STIP was conceived to sustain momentum and Q: What was STIP’s purpose? try of Health, but at the district level. fertile countries in the world. An average strengthen the control of AIDS and other sexually Q: How about the Health Systems Ugandan woman has got about 6.9 chil- transmitted infections as part of the country’s re- In July 1994, to curb sexual transmission of HIV. Q: What was the World Bank’s input Strengthening Project? dren. Poverty levels are also high so it is • At least 50% of the target sponse to the severe impact of the HIV/AIDS epi- Secondly, it was to mitigate the health impact of then? important that population growth rate is population able to cite demic on the general population and on the econ- HIV/AIDS. Thirdly, to build capacity of the health The HSSP is another World Bank-supported project, controlled. two acceptable ways of omy. Funding from the Global Program on AIDS of sector, districts, and medical workers as they The project total was $76 million. The Bank put with the key focus on maternal health, new-born protection from HIV the WHO - that had provided significant support were addressing the epidemic. In prevention, the in $50 million. There were other key partners care and family planning. It has four major compo- Under this fourth component, key empha- between 1987 and 1992 to the National AIDS Con- emphasis was to create public awareness. Also to who came in including DFID, the Germans, and nents: Strengthening the health work force. Ugan- sis is to reduce maternal and infant mortal- • Condom use with non- trol Program (NACP) of the Ministry of Health - was strengthen prevention through procurement of the Swedish. da’s biggest problem is a lack of adequate staffing. ity. Many women die in labour because they regular partners in- running out. However, the national HIV prevalence condoms, and to identify patients with STDs, Health workers, particularly those working in hard- get obstructed labour when they are far among adults was still estimated at about 15% and diagnose, treat and monitor them properly be- Q: You talked about that project but to-reach areas, are being identified to receive schol- from the health units. It becomes very hard creased by 50% Uganda was being referred to globally as the epi- cause at the time, the understanding was that then there was another one. arships and get training. Secondly, health workers at to manage those kind of patients when center of the HIV epidemic. The Bank had initially sexually-transmitted infections promoted the the central level are also being identified for masters they arrive in the hospital. • Reported casual sex part- proposed a Community Health and AIDS Project spread of HIV/AIDS. The second project was the Multi-Sectoral HIV/ degrees training and we are also looking at increas- nerships reduced by 20% (CHAP) as a follow up to the Bank-supported Uganda AIDS Control Project to a number of African ing recruitment. Then also strengthening the health Q: How come HIV infection rates First Health Project to address health policy issues Now the second arm was to support infected countries. Uganda received close to $54 million infrastructure. This project is $130 million; we are are going up again? • 70% of individuals seek- and support efforts to contain the growing AIDS epi- people. First and foremost to diagnose the dis- from the World Bank. The Multi-Sectoral HIV/ identifying hospitals in bad need of renovation, and ing STD care receiving demic. Given the seriousness of the AIDS crisis and ease, which meant testing of blood. Secondly, AIDS control project came in to follow STIP. The places that need new hospitals. This includes one big Infection rates are going up again largely appropriate STD treat- the perceived complicated design of CHAP, however, it was to provide social support to the infected. big difference in the Multi-Sectoral project was hospital in Moroto. There are going to be five hospi- because people feel that medicine is avail- ment the original project was split into two projects – STIP, Thirdly, to provide them with medicines to treat that the HIV/AIDS response was taken from the tals across the country. able now; that has been a very bad problem. which was to focus specifically on sexually transmit- opportunistic diseases, especially tuberculosis. district level to the community level. That sub Of course people with AIDS now can live ted diseases and HIV interventions, and the District component for the communities is commonly The third component is for strengthening leader- long, they can marry, get good children so Health Services Pilot and Demonstration Project Finally there was capacity-building to upgrade called the CHAI component. That is the Commu- ship, management and accountability at central complacence is high. Unfortunately people (DHSP), which was intended to support a broad set the quality of work in the district. nity-led HIV/AIDS Initiatives. level. By accountability we mean that health work- who are getting the infections are married of health sector reform initiatives, including the re- ers will enter into a contract against which they will habilitation of the health infrastructure. Q: What did STIP achieve? It provided a lot of logistical items like vehicles have agreed on their output. This is going to happen CONT. ON PAGE 139 136 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 137 HIV/AIDS: Health Controlling Sexually Transmitted Diseases CONT. FROM PAGE 137 couples. Q: How shall we mitigate this? We just have to emphasize condoms. If you can’t stay in your compound, get yourself condoms and move away. The Bank has done a good job in sup- porting this country in HIV/AIDS be- cause it put a lot of money in the STIP. In the second project it made sure that the fight against AIDS was done by everybody; it brought it down to the community. Q: What about the Uganda AIDS Commission? The Commission was the host. STIP was in the technical unit of the Min- istry of Health which drove it. Simi- larly the technical input of the Uganda AIDS Commission was there to see to it that all sectors and not only Minis- try of Health have something they do in fighting AIDS. Their headquarters in Ntinda was from this project. A surgical operation to circumcise a man as part of the fight against HIV/AIDS. Photo/ Laura Walusimbi 138 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 139 Ex-Finance Minister: Insider’s View INSIGHT FIV E Gerald Ssendawula (Above) Uganda Airlines, a loss-making public en- terprise, was privatized and eventually liquidat- ed in 2001. Can there be a new national airline, under a Public-Private Partnership arrangement? (Left) The head office of the defunct Greenland Bank, which was closed under the weight of big Time for a Review irredeemable non-performing assets. Photo/Da- vid Sseppuuya of Reforms with National Budget, we went to Washington three times to meet the deputies at the World Bank. gotiations with the World Bank on the remedial measures, Greenland’s Chairman, Dr. Sulaiman 2001 after a privatization offer fell through) for a justified reason but can’t we now have a par- World Bank Uganda became the first country to benefit from the global debt relief. Kiggundu, was a party in his capacity as the Gov- ernor of the Bank of Uganda. But then Green- land didn’t reform as well as expected. ticipatory arrangement? A Public Private Part- nership (PPP)? As a land-locked country, we are always at the mercy of Kenya because they are The next year I was invited to the Oval Office to now the ones running a successful airline. brief President Clinton on achievements from Reforming the Finance Sector entailed ensur- Gerald Ssendawula was debt relief. I told him that Uganda’s primary ing that there was credit for the Private Sector, How have we performed in marketing? Is the education enrollment had moved from less than mitigating on the pricing of money, and a good middleman helping us to sustain standards since Minister of Finance from a million to two million; that we had increased exchange rate regime. we have to market standard products? The real- 1998 to 2005 when the classroom blocks; and had also improved im- ity is that today there is a lot of activity by mid- munization. I think he was very moved and told Initially, it was one-way traffic, but the reforms dlemen in import business as a result of doing Ugandan economy was me he would put in a word for Uganda with the were fully justified and as far as Uganda is con- away with marketing boards. stabilizing Bank deputies, and also bring other countries on cerned, we owned these reforms. They were not board. Indeed he fulfilled this. Jim Adams was forced on us. Of course there was political agita- That’s why I support PPP arrangements; I can the World Bank Country Director covering Tan- tion because there are people who were looking see that they can substitute effectively what is zania and Uganda and he was very impressed at Government as a godfather. missing. I think we have had a useful partner- that I had been able to convince Clinton to come ship with the World Bank as a result of proper for the World Bank’s Annual Meeting because he To get credit from UCB you had to go either to implementation of programs. We have been able had told them he was not going to be there. the finance minister or a member of Parliament to grow our economy. But we still require sup- to give you a chit (introductory note) to take to port to develop an efficient private sector. Photo/The Daily Monitor The privatization program was extremely tricky, the bank’s Managing Director. but with strong support it came through. The We require Government to be supported by de- Bank, for example, helped us finance the trans- Your backer would say, “This man is a very seri- velopment partners like the World Bank along- In 1985-86, we had the opportunity to discuss views. We felt it was not appropriate for the whose role was not to market coffee but act as an action advisor for Uganda Commercial Bank ous farmer in our area. He wants credit of shs300 side the private sector to improve and put in the different World Bank policies at a time when Government to be involved in trade. I recall dur- industry regulator. The Cotton Development Or- (UCB). It had been difficult to privatize UCB be- million to buy a tractor.” If the letter came from place arrangements that can formalize the vari- there was the two-tiered Window 1 and Window ing the Idi Amin era (1971 to 1979) he created ganisation succeeded the Lint Marketing Board. cause we were divided even within the Govern- either the Prime Minister, or Minister of De- ous private sector activities. 2 foreign exchange arrangement for vital Gov- companies. The best Government could do was Produce could now move freely between farmers ment. The Chairman/ Managing Director had fence, the credit had to be granted. ernment business and for less critical foreign initiate policies to facilitate the Private Sector. and traders. In infancy it wasn’t easy but World convinced some of the political leadership not to Why? We are now living in a global village and exchange transactions. Bank support helped. privatize the bank. It should have been two-way traffic. Have we our products have to have minimal standards to In 1989, I was appointed to chair a committee to carried out a review of all these reforms we un- be acceptable in the world market. In the absence Prof. Ponsiano Mulema, the first post-war fi- review the cooperative movement, and in 1990 In 1998, I was appointed Minister of Finance, The reforms led to the closing of some banks dertook? Have we had a holistic review with the of a strong private sector you cannot grow the nance minister, was a very strong critic of these I was appointed Deputy Minister of the merged Planning and Economic Development at the to bring non-performing assets to a reasonable World Bank? This had been my demand. For economy. It is the private sector that is supposed policies as he felt that they were not effective for Ministry of Cooperatives, Trade and Marketing, height of negotiating debt relief in the IMF and level as the cost for credit was very high for the instance we had no alternative but to privatize to be the engine of growth because Government smooth, efficient economic transition. and Industry. The merger followed Government World Bank’s joint Highly Indebted Poor Coun- private sector. There was very poor debt collec- Uganda Airlines because our monthly subsidy does not do business. Yet Government requires and World Bank-sponsored restructuring for a tries (HIPCs) initiative. We had to prove that we tion. UCB had a very bad record, and bench- for Uganda Airlines was $2 to $3 million. Now revenue to provide the infrastructure but it can- President Museveni took interest in Prof. manageable administration. spend the largest portion of our budget in ser- marks were set. The action closed Uganda Coop- we see that it is inconvenient to rely on the na- not tax empty pockets. Money must be there to Mulema (an ideological opponent and former vicing debt. I can’t remember the figures but we erative Bank, International Credit, Trust Bank, tional airlines of other countries. be taxed. That is my sincere appeal. shadow finance minister) as Minister of Finance The Coffee Marketing Board was replaced with were able to get debt relief at the end of 1998, Teefe Bank, and Greenland. The biggest surprise so that Uganda could benefit from his different the Uganda Coffee Development Authority and actually when I was working on the 1998/99 was Greenland Bank because during all the ne- Uganda Airlines was privatized (liquidated in 140 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 141 WATER & SANITATION Water & Sanitation SE CTIO N SIX The provision of safe drinking water for all is the driving force in water management. Efforts to improve sourcing and quality, together with distribution, lie central to the country’s water and sanitation strategy. The Water Management and Development Project for Uganda is focussing on integrated water resources planning, management and development; and access to supplies and sanitation services in priority urban areas 142 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 143 Services: Water & Sanitation From Amin’s Formed in 1972 by a decree, signed by then President Idi Amin, the National Water and Sewerage Corporation (NWSC) came ‘Free Water’ to 2018, in to fill a vacuum that was created by the sudden expulsion of Asians. Upon formation, by Decree No. 34 at a time when there was no Parliament, since the country was under military rule, the National Water Rides military leader also declared that water should be a free commod- ity for all. That idealism was not matched by funding, and as the new orga- the Tide nization started work, it inevitably flowed into rough tides, and limped through the 1970s. NWSC had taken over from the Kam- pala District Water Board, and initially covered the urban areas of Kampala, Jinja, and Entebbe. The Directorate of Water Develop- ment (previously the Water Development Department) oversaw water operations in other centers, most prominently under the Small Town Water Project. By 2018 when the $135 million Water Management and Development In 1988, four additional towns of Mbale, Tororo, Masaka, and Mbarara were handed over after completion of the World Bank- Project for Uganda will have concluded, National Water and Sewer- (Above) Eng. Kasozi-Kaaya, the first Ugandan boss, was age Corporation would have ridden the tide of developing Uganda. fired by an insecure, suspicious President Amin. (Below) CONT. ON PAGE 146 Cleansing and purification processes at the NWSC plant in Kampala. Photos/David Sseppuuya, Laura Walusimbi 144 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 145 Services: Water & Sanitation (Left) Sewerage trucks deposit their payload at National Water and Sewerage Coropration’s treatment From Amin’s ‘Free Water’ to 2018, plant in Kampala’s Industrial Area. The trucks are chiefly privately-owned (Above) Tanks and treatment pools at the Industrial Area plant. Photos/Laura Walusimbi National Water Rides the Tide when President Amin created NWSC in 1972, in 1990 and co-financed by the World Bank, the and Development Project for Uganda, for which CONT. FROM PAGE 145 Kasozi-Kaaya was appointed as the first Manag- European Economic Community, the Austrian NWSC is one of the implementing agencies. It ing Director. Government, and GTZ of the Federal Republic is now investing in integrated water resources of Germany, was to provide a new take-off point development and management, including iden- financed rehabilitation program. In November 1995, “It was a tough time,” he recalls. In the absence for NWSC. It was prepared with IDA assistance tifying, preparing and implementing selected the Corporation was re-established under the NWSC of spare parts in a rundown economy, Kasozi- to improve water supply and sanitation in seven priority investments through a participatory Statute. In 1997, the towns of Kasese and Fort Portal Kaaya found himself improvising. “In 1975, in major towns - Kampala, Jinja, Entebbe, Tororo, planning process in the Kyoga and Upper Nile were handed over to NWSC, followed by Kabale in the run-up to the Organisation of African Unity Mbale, Masaka, and Mbarara. Water Management Zone. 1999. summit in Kampala, the systems at Ggaba, the plant supplying the city, were broken. I decided Twesigye was part of the staff as teams worked Under NWSC, the project is also constructing, In between, Engineer Paddy Twesigye remembers to ferry water on tank trucks to ensure that sup- in the various towns to construct new concrete improving and expanding priority water supply the leaking tanks. “By the time serious work begun, ply for the main hotels – Nile Mansions (Serena tanks at Boma, in Nyendo, Masaka as well as infrastructure and sanitation/sewerage services after the disruptions of civil violence and political in- today) and International (Sheraton today) - was sewer ponds and sewerage treatment facil- in the municipalities of Arua, Gulu, Ishaka- stability up to early 1986, the new Braithwaite tanks not disrupted. The President thought I was sabo- ity; and new tanks in Mbarara. The main work Bushenyi, and Mbale. at Ggaba had bullet holes. They were leaking.” taging the summit and he fired me.” was substantial extensions of water supply and waste water systems in Kampala, Mbarara, Ma- The total number of towns currently served by “We had little capacity to manage. By 1987 there Kasozi-Kaaya was to go into private practice un- saka and Jinja and more limited improvement of the NWSC are 22: Kampala, Jinja/Njeru, En- were just five engineers – my own boss was not even til 1979, when the liberation forces that over- water supply systems in Entebbe, Mbale and To- tebbe, Tororo, Mbale, Masaka, Mbarara, Gulu, qualified to be a plumber. We had just five vehicles,” threw Amin contacted him through Prof Tarsis roro; strengthening of NWSC capacity including Lira, Fort Portal, Kasese, Kabale, Soroti, Bush- recalls Twesigye, a 26-year veteran at NWSC. Kabwegyere to lead the rehabilitation of the Wa- technical assistance, training to improve techni- enyi/Ishaka, Arua, Mubende, Masindi, Hoima, ter Sector. He returned to NWSC as Managing cal, commercial and financial operations and the Lugazi, Iganga, Malaba and Mukono. Before Twesigye joined, Engineer Christopher Ka- Director until 1986 when he handed over to En- supply of spares and chemical; and project coor- sozi-Kaaya had steered the nascent NWSC through gineer Hillary Onek, while Kasozi-Kaaya himself dination and construction supervision. the rough waters of its early years. In 1965, he had went on to serve as board chairman until 1989. succeeded a British colonial officer, Engineer Cox, as In 2012 the Government borrowed $135 million the General Manager of Kampala Water Board, and The $60 million Second Water Project, launched from the World Bank for the Water Management 146 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 147 Small Towns: Water & Sanitation (Left) A Kyotera citizen at a water point in agreed to finance in 1991 the First Urban Proj- the town market. Photo/Laura Walusimbi. ect to develop other urban infrastructures and (Above) Engineer Chris Azuba of the Minis- services. try of Water. Photo/David Sseppuuya By then, Azuba was fully on board. He eventually joined the water ministry as a ‘pupil’ engineer in “The main component included civil works 1987, became a senior engineer a few years later. which meant construction, laying of pipe lines, He was to be promoted to Principal Engineer in storage tanks, electro-mechanical works mainly 1998, before taking up his present position as pumping equipment to pump the water from the Assistant Commissioner Planning, Urban Water sources to the tanks, and also treatment. In the and Sewerage Department. He has seen it all. towns that were big, we had construction of new sewerage treatment facilities, a small compo- Perhaps the most outstanding has been the un- nent of capacity for the Government and NWSC expectedly successful Small Towns Water and staff involved, but at that stage we had not really Sanitation Project. Costing $42.3 million, it was thought of big investments in capacity building. conceived to improve health conditions through It was mainly a hardware project,” says Azuba. better water supply, excreta disposal, waste are still fresh. “Oh yes, the soldiers took a few ve- management, and public hygiene; to alleviate hicles. The security situation could hardly allow Both were successfully implemented despite the poverty and improve the welfare of women; and contractors to continue with work,” he recalls of political strife that plagued the country before to reduce environmental degradation through the situation prior to 1986. the mid-1980s. better waste management. It was rolled out to 11 small towns (Busia, Kalisizo, Kyotera, Lugazi, “There were one or two incidences which were re- In the late 1980s, the Government prepared Luwero, Lyantonde, Malaba, Ntungamo, Rakai, ally bad, expatriates were confronted by soldiers with IDA assistance, to invest in the Urban Wa- Rukungiri, and Wobulenzi), where most of the who wanted to take away their vehicle. Well the ter Supply and Sanitation Program for the above town populations drew water from boreholes taking away of the vehicles per se was not that seven towns, estimated to cost $194 million. with hand pumps, and from springs and tra- big an issue, but you can imagine when you have IDA agreed to support the Second Water Supply somebody drunk, illiterate pointing a gun at Project as a first phase of this program, and also CONT. ON PAGE 150 you. You know that they could have done any- thing to them so several of these expatriates just left. Of course you know with these foreign com- panies there are issues of insurance. It is not that From pre-1986 Gunfire, any expatriates were killed, but the experience of having to pass on something under gun point and even for those courageous enough to stay, at Uganda’s Small Towns Water any slight incident people would stay away from work.” Becomes a Global Model He should know. Azuba graduated as an engi- neer from Makerere University in 1984 and was all set for a career in water engineering. “It was a very difficult time, I personally experienced it. I could have joined the Ministry of Water in 1984 after I had left university, but because of Kampala in 1984. The odd burst of semi machinegun fire keeps resi- problems in the country, you would go for an in- terview and it gets postponed, you go for this, it dents on the alert and, in any case, they can only be on the streets doesn’t happen.” for a few hours. By 4.00pm, the city is clear of people, all cower- ing away, with or without water, for the night long before sunset. The Bank first got involved in the Water Sector in Uganda in the 1980s when it approved the Water Supply Engineering Project, and then the Water Supply and Sanitation Rehabilitation Project of It is in this environment that attempts were repeatedly and discourage workers from projects to bring 1984, rehabilitating badly deteriorated water and ultimately successfully made to supply these resi- water into urban centers. and sanitation infrastructure in Kampala, Jinja, dents and those in other towns with reliable water. The Entebbe, Tororo, Mbale, Masaka, and Mbarara, insecurity of 1980-85 was to cost a number of vehicles In Engineer Chris Azuba’s mind, the memories in the Seven Towns project. 148 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 149 Hand-Washing: Water & Sanitation From pre-1986 Gunfire, Have You Washed Uganda’s Small Towns Water Those Hands? Collecting water at an access point in Kali- sizo’s central market. Photo/Laura Walusimbi Become Global Model The World Bank’s Water and Sanitation Program (WSP) is support- Survey 2011 and the Water and Environment Annual Sector report 2011/2012, the national CONT. FROM PAGE 149 ing the Government in implementing the 10-Year Improved Sani- hand washing rate has increased from 24% to tation and Hygiene Financing Strategy for rural and small towns. 27%. The rate of hand-washing in the 30 focus ditional sources such as rivers and lakes, and was viding water for smaller systems that are not districts has increased from 24% to 29% com- implemented under the Directorate of Water Devel- necessarily very viable economically to provide pared to the non-focus districts where the hand opment (DWD). DWD was given capacity to oversee services, but at the same time attempting to washing rate has increased from 18% to 24%. construction and support the management of water make the people pay a little money for the ser- Poor sanitation and hygiene is one of the five half of those lives. A World Bank study in 2007 supply systems. They were called ‘small towns’ be- vices. So under that program we then developed major causes of the country’s high infant mor- showed that the rate of HWWS in Uganda was The project is a public private partnership that cause they were the urban centers not connected to ways for managing water supply in small towns.” tality rate. Hand Washing With Soap (HWWS) is only 14%. The HWWS campaign was piloted in has so far raised over $2 million from the Gov- the NWSC’s grid. one of the most effective means of preventing five districts in 2007 then scaled up to 30 dis- ernment and development partners like UNI- “Running water supply systems in small centers diarrheal disease, alongside safe stool disposal tricts in 2010 to increase the rate of hand wash- CEF, DANIDA, DfID and the World Bank. It has In the small towns in particular, some of the bud- using private companies is not easy, because the and safe household water treatment. ing with soap among mothers of children under been running since 2006 and has secured fund- get allocated for waste management went to provi- volume of business is low, but we have managed. five years, at critical junctures like after visiting ing for operations up to 2015. sion of two vacuum tankers for desludging cesspit Many people from all over Africa – Kenya, Tan- According to UNICEF, in 2009, approximately the toilet, from 14% in 2007 to 50% in 2015. and septic tanks and sanplats in a few of the towns. zania, Malawi, Zimbabwe, Ghana, South Sudan, 94 Ugandan children died every day from di- Beyond the small towns, there were also civil works Rwanda, Nigeria, Burundi, and Ethiopia – have arrheal diseases and HWWS could have saved According to the Uganda Demographic Health for rehabilitation of water supply systems including been here to study how we do it. We have even the treatment works, replacement of pipes to reduce received delegations from India, while elsewhere leakage, expansion of the water supply system to from outside Africa, we get experts and consul- parts of Jinja and Njeru; rehabilitation and expan- tants who are eager to learn,” says Azuba. sion of the sewerage system in Jinja; studies for expansion of water supply systems in major towns A study shortly after completion of the project (Kampala and Gulu), provision of equipment and showed that town residents now have a better materials, consulting services, technical assistance, quality and a higher quantity of water supply training and operating costs. and noted a significant shift from point sourc- es towards piped water usage. Currently, about Azuba recalls, “Actually our small towns became a 70% of the households, compared to 5% at the common reference across the world and they helped start of the project have piped water as their pri- us develop that concept of small towns, that is pro- mary source. (Top and left) Soap and clean water are critical for maximum domestic hygiene. Photos/David Sseppuuya 150 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 151 Small Towns: Water & Sanitation Kalisizo Showcases Best of Small Town Water Its claim to fame in Uganda is still a bit du- bious, but Kalisizo is fast-shedding its past and embracing a present and future that is as clean as the water that flows through the town’s veins to make life that much easier for its citizens. For the entire span of a decade, in the 1970s, Kalisizo was a frontier town in the battles that the Govern- ment of Uganda fought against Tanzania. Initially in 1972, when forces opposed to Idi Amin’s rule, and then in 1978-79 when the war that overthrew him was fought, Kalisizo was synonymous with military conflict. Located on the highway to the Uganda-Tanzania bor- der, Kalisizo was a strategic town for all sides in the military conflicts, and controlling it usually gave the occupying side a big advantage over its enemies. Be- ing 60km north of the border, it was a redoubt for its defenders and a target for attacking or counter-at- originates from springs. “But we have a problem to serve a very small population. Even after tacking forces, and many battles were fought there. of extending to the other hills,” he says, now that rehabilitation between 1997 and 2000, it was With its hilly outlook, it is easy to see how it is a mili- the town is expanding beyond its traditional not sufficient for a growing population – water tarily strategic town, as it gives great vantage view- boundaries. could not reach many places, especially the hills. ing over the surrounding plains. But those hills also In 2003, the Town Council contracted a private pose problems for its water system. At the central market, a woman saunters in with operator who was paid a percentage of what the saucepans delicately balanced on her head. At residents pay.” Today, there are no more signs of war, and the only the water point, a young girl brings jerry cans. battle the town and its folk are still fighting is growth Within minutes, both are walking away, their The triumph, Engineer Nabagala feels, is the fact – the population is growing and the physical spread needs satisfied. A post-project study shows that that the town has since broken even. “We used has extended from two hills to the three it occupies overall, per capita consumption is estimated at to get cash from DWD (Directorate of Water De- today. 20 liters at yard taps and house connections and velopment), but now we do not take subsidies.” 10 liters at kiosks and point sources in the 11 By the time it was contracted in 2001, WSS Services, small towns serviced by the project, meaning Instead, the town is now preparing to request the private company that supplies water under the that consumption would increase with more di- DWD to expand, with a new water sump – a low- Small Towns Water Project, had 137 connections, rect connection. land area to receive drainage – and installation and a 7km distribution network. Today the connec- of other tanks at higher altitude to use gravity. (Top left) The pump house in Kalisizo is operated by a private com- tions have grown to 737, while distribution covers Annette Nabagala is the town engineer, and pany, which also lays out piping (top right) to create new connections. 21km. she remembers a time when typhoid, the acute For its success, Kalisizo has been rewarded with (Above) a graphic outline of the operations and functionality of Ugan- highly infectious disease originating from con- regular visits by foreign delegations seeking to da’s successful rural towns water project. Photos/Laura Walusimbi Wycliffe Lule, WSS’s manager, reckons that 50% of taminated water, was commonplace. “The town’s learn how best to run an efficient and profitable the population is connected to his supply, which original water system was constructed in 1968 small town water supply system. 152 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 153 Garbage: Water & Sanitation Solid Waste Management Unpleasant The cycle of activity is unbe- lievably efficient. A garbage truck drives in and up the slope But Necessary whose foundation is a mixture of hard-pressed garbage and soil, it tips over the refuse into a pile that, within seconds, formally employed cleaners and free-ranging human scav- engers rush over to sift swiftly through. Clad in gumboots in various stages of wear-and-tear, ommended fashion. (Above left) Kampala, Mbarara, Mbale, Jinja, Gulu, Fort Portal, Kasese, Soroti, Kabale, and Lira all use the scavengers quickly separate any item that may be a combination of municipal vehicles and private trucks to collect garbage. (Above right) Effluent from remotely useful – plastic mineral water bottles for re- Through it all and in spite of the stench that wafts Kiteezi’s decomposing waste is drained, treated in ponds, and eventually discharged manageably into cycling, a pair of shoes that may still be worn, even a with the breeze, Phoebe Gubya watches with keen the wetland in the landfill’s vicinity. Photos/Laura Walusimbi cup that could find its way back into a kitchen. yet relaxed interest, explaining: “The waste is more than 80% compostable – we do not receive Compost produced from municipal Solid waste managers, human When the people have finished separating the reus- hospital or industrial waste. We only treat do- solid waste metric tons: Estimates scavengers, marabou storks, able, in come the marabou storks, flapping their un- mestic municipal waste. If any of the private gar- only egrets, and vultures mix up with gainly wings and sinking their long beaks in whatever bage collectors bring dangerous forbidden waste, trucks and heavy machinery to has remained. They are competing for edible scraps the dumping hospital is fined and the delivering with the vultures that circle menacingly, scraps that vehicle is impounded, and the owners fined.” in 2000, at a time when Kampala had nowhere to and Mbarara. clean up Kampala’s solid waste at are food in various stages of decay. put its waste. There had been wrangles between Town/City Metric Tons the Kiteezi landfill. Photo/Laura Walusimbi Phoebe is a City Environment Officer and the the City’s Town Clerk and Wakiso District, in The Kenkompe Composting Site, 7km from Kampala 12,000.0 On the edges of the rubbish, safely away from the manager at the Mpereerwe Sanitary Landfill in which the landfill is located. The Bank has given Mbarara’s business district, is managed by the more aggressive vultures and ‘kalooli’ marabou Kiteezi, outside Kampala. The landfill operates budget support in waste management to various Municipal Council and NEMA. Mukono 1,492.9 storks, chickens scratch at whatever the other birds 24 hours a day, seven days a week, turning over urban centers. Jinja 1,990.6 are not interested in, scampering in time to avoid 12,000 tons of solid waste a month. Before it was established in 2005, garbage from Mbale 2,213.6 the odd human scavenger still intent on recovering Under the Second Environmental Management the growing municipality was being dumped a freshly uncovered item. Shortly, the bulldozers and “The waste contains a lot of water – we manage and Capacity Building Project in partnership indiscriminately, leading to pollution of land, Soroti 1,235.5 excavators move in, shoveling the waste and cover- the solid component, and we send the liquid with the National Environment Management air, and water, especially during the seasonal Lira 840.8 ing it with soil, leveling and spreading garbage out component for treatment. We do have a lining Authority (NEMA) and the National Forestry streams that flow from the highlands of Ankole. Fort Portal 1,390.0 on slopes to ascertain good drainage at the edges of of hardcore concrete/sand/clay that prevents Authority (NFA), Arua, Hoima, Masindi, Mitya- the 16-acre landfill. filtration of dangerous effluent into the ground na, Entebbe, Busia, and Tororo received equip- Today, Kenkompe processes 70 tons of waste a Kasese 1,046.8 to avoid contaminating soils and water,” says ment for solid waste management. There are day. Composting process, which takes 6-8 weeks Mbarara 1,372.8 Order is enforced by a team of 16, including clean- Phoebe. nine improved and functional municipal solid to mature, is particularly useful to the neighbor- Kabale 1,698.8 ers, record keepers, and a leachate assistant, who waste (composting) facilities in Mukono, Jinja, ing farming community as it provides compost ensures that disposal is done in environmentally rec- The World Bank started supporting the landfill Mbale, Soroti, Lira, Kasese, Fort Portal, Kabale, for gardens, plantations, and pastures. Source: NEMA, Dec 2012 154 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 155 Ex-Finance Minister: Insider’s View INSIGHT SIX Ezra Suruma Structural Adjustment Not Easy but Had to be Done Dr Ezra Suruma was Minister of Finance from 2005 to 2009. He has also served as Deputy Governor of the Bank of Ugan- da, and Managing Director of Uganda Commercial Bank. He is currently Senior Presidential Adviser on Finance & Economic There was very fast struc- tural transformation over the Planning. 1990s. Agriculture’s contri- bution to GDP reduced from and the Bank asserting that what needed to be to “spend-as-budgeted” rather than to spend as about 50% to about 25%. The done was to stabilize the situation. You can com- money was available. biggest contributor to the Q: What was the impact of the Struc- pare this with a patient. When a patient comes transformation has been the tural Adjustment Policy? to hospital in a critical condition, you don’t start We had a lot of difficulty in asking ministers to Construction Sector. Source: with immediate treatment; you have to stabilize co-operate. So we found ourselves overspending, Uganda Bureau of Statistics When the NRM Government came to power the patient. inflation going back to 60% and with a new cur- in 1986, the economy was zero. No foreign ex- rency this became too painful to tolerate. The change, no fuel, the companies were mostly The first important measure was the World Bank President had to take a very firm stand and say parastatal organizations producing at less than lending us $100 million. The Balance of Pay- inflation must stop. 5% capacity and allocating whatever little they ments support helped us import essential goods; produced to those who were lucky to get it. There we set up the Open General Licence (OGL) and Inflation came under control - these were as- was nothing in the stores, the infrastructure had this meant that we had a list of what were con- pects of SAP. Privatization of state enterprises collapsed. Initially there was a view that some- sidered to be very important products - blan- and the return of Asian properties started in the how these problems could be solved by ourselves kets, soap, salt. early 1990s. alone but by the end of the 1986, it was clear that we needed help. We started in 1987, remov- Another feature of SAP was the removal of price Q: Some analysts believe that SAP and ing three zeros from the currency and came up controls. It is not as easy as it sounds, but Gov- the World Bank recommendations were with a new currency in May 1987. That helped ernment stopped the idea of fixing the price of experimental; they were not likely to curb inflation; it took 30% of the incomes of the soda or beer, and opted for whatever the mar- work in a developing country such as people for the Treasury. Some people were not ket says to be the price. Of course initially prices very happy, but the Treasury needed money be- shot up, but inputs started coming in for manu- Uganda. cause we hardly had any tax collection. facturing so supplies started to stabilize. I wouldn’t agree with that. I would say that they Everything we had was coming from coffee tax- Medicines were nowhere to be found, but they had reasonable experience why black markets es. So together with the IMF and later the World were on the OGL list. Donors started coming arise. For instance, why was there a black market Bank, we attempted to see how we could stabi- in and in 2-3 years we began to see prices and for beer? Beer could not be found on the open lize the situation - we needed foreign exchange inflation come down. Later on we mismanaged market, you had to go to someone’s house to buy desperately, and we couldn’t raise $5 million per a little bit, the Government was having difficul- month. We came up with a program, the IMF ties in controlling the ministries. They were used CONT. ON PAGE 158 Photo/David Sseppuuya 156 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 157 Ex-Finance Minister: Insider’s View Structural Adjustment Not Easy, but Had to be Done CONT. FROM PAGE 157 beer and buy it at a price higher than what had been set by the Government. With the reforms, there was reason- able supply of beer and the sellers were free to set the price so there was a balance between demand and supply. Q: Many people think that Uganda was skepti- cal about the World Bank and IMF policy. Why do you think people did not like them at the To curb inflation, the currency reforms of May 1987 took three zeroes off the 1985 series of notes (right) and imposed a 30% tax for Government revenue, to come with start? a new, stronger set of currency notes (left). This was a major part of the Structural Adjustment Policy. Photos/David Sseppuuya I don’t agree that people didn’t like them from the start, been built up as pillars of the economy. So agreeing to sell There had been a huge increase just as there had been in I think they were suspicious. them, and to who, was a big issue that could not be ex- primary intake as a result of the Universal Primary Edu- plained by the Bank. cation (UPE). In 2006 the children who had been coming Q: Why were they suspicious? out of UPE needed to continue and parents didn’t have I had to lead teams to Costa Rica and Madagascar to figure the fees as they didn’t have for the primary education. Many of us who were coming into Government had out how to liberalize coffee export. I led other teams to grown up in the ideological struggle between capitalism Mauritius and Ghana to see how to liberalize the foreign Q: What do you consider to be the World Bank’s Per Capita Growth Performance Is Correlated and socialism in the 1960s and 70s. So we were borrow- exchange program; to set up these forex bureaus. This was single biggest influence? ing planning from the East (socialists) and at the same a huge adjustment that we had to make intellectually and With Better Macro and Structural Policies 6.0 time working with Western countries, getting aid. Some ideologically. They supported education, agriculture, electrification; people had an inclination towards socialism; others to they have supported liberalization of the economy in Mauritius 4.0 capitalism. There was suspicion and a fear of neo-colo- Q: Many don’t understand why Uganda Com- all sectors. Privatization, Financial Sector reform, infra- Uganda nialism. Although the old colonialists had gone, there mercial Bank was privatized. Was it good busi- structure, so many of the roads that were tarmacked, the 2.0 was suspicion of new ones disguised in the World Bank money came from World Bank. In every area of transfor- Per Capita Income 1990s ness? Botswana and IMF. mation they have been involved. Angola Having played a role in Financial Sector reform I am not 0.0 - 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 Q: So how did the World Bank fit into Uganda’s sure I can give an objective answer but the fact was that Q: How would Uganda have performed had the UCB was not profitable. I did a great deal of work hoping World Bank not been there? -2.0 requirements? to bring it back to profitability but I did not succeed. In an environment of extreme scarcity and extreme need, We had an option of not bringing them in 1986 when -4.0 we didn’t really have much negotiating room. So IMF on Q: What projects did the World Bank introduce NRM came to power; Government tried to do without the one hand was working on the macroeconomic sys- when you were minister? them and the IMF and the results were not very good. -6.0 tem. They focused on sector reform. I usually found that You saw that in the first ten months of 1986, we contin- DRC sector negotiation was not as hard as the macroeconomic By 2005, the economy had long stabilized and we were ued allocating sugar, and that did not go very far. There -8.0 terms that we had to negotiate with IMF. more into economic development rather than stabiliza- was a realization that we needed them, sometimes it is Average Macro and Structural Policy Scores tion. We were looking at how to increase education access, not good to be very proud, it is good to admit when you Q: What were the challenges that came with with introduction of free Universal Secondary Education need help; no doubt that the World Bank did a lot in sta- (USE); we started this using our own funds. We started bilizing the economy. SAP? with Senior One (secondary school entrance class) and Q: Why not? Privatization of parastatals was very difficult. Since in- later we expanded the program with the World Bank. Q: Could the barter trade system have helped? dependence, a large number of these organizations such You see we were bartering coffee with Yugoslavia, for ex- as Uganda Development Corporation and its subsidiar- Q: How successful was the initial four years of No. ample, and then they were selling it (on the world mar- ies, various companies like Uganda Commercial Bank, ket). So why not sell the coffee yourself and get a good USE? Coffee Marketing Board, Produce Marketing Board had price? 158 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 159 ENVIRONMENT & CONSERVATION Environment & Conservation SE CTIO N SE VE N Uganda has some of the world’s greatest variety of flora and fau- na, relative to the country’s size. It is also one of the best wa- tered nations in the world, has some of the most fertile soils and relative expanse of arable land, and variant topography. These blessings nonetheless pose challenges for sustainable use by what is one of the world’s fastest-growing national populations 160 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 161 NEMA: Environment NEMA is at Frontline of a (Clockwise from left) The World Bank-funded head office of the National Environ- ment Management Authority in Kampala city center; Seasoned environmentalist Henry Aryamanya-Mugisha; a well-conserved Buso Recreation Forest in Central Tough Battleground Uganda; agricultural practices in Karamoja that could precipitate soil erosion. Photos/Laura Walusimbi, The New Vision, David Sseppuuya, World Bank Archives Uganda is a battleground for environment and conservation concerns. Environmentally very rich and incredibly diversified, the country also constantly battles with problems that threaten its natural heritage. Aryamanya oversaw the Today, NEMA House stands proud, a glass-front- implementation of micro- ed multi-storey structure in a prime location of Overpopulation, with one of the world’s highest “But there was enormous will to reverse trends, projects with communities, Kampala, testimony of cooperation between birthrates, overgrazing, deforestation, soil erosion, although there were no technical people. There like tree planting on hill- Government and development partners. wetland degradation, and primitive agricultural were a few botanists, but no environmental law- tops, and on river banks in methods, are all regular battles in the struggle to yers. And there was no policy or law until 1994 places like Nakivale, River More fundamentally, NEMA continues to fight protect the heritage. and 1995. It is President Museveni who chal- Nile at Nile Resort, Ibanda, many battles, losing some especially to non-law lenged for a policy and a law,” Aryamanya re- Kabale, and Mt. Elgon. abiding private and government institutions in Aryamanya-Mugisha, a grizzled campaigner, strat- calls. “When the law and policy issue came up, wetland and forest encroachment, but winning egist, and enforcer, is however more hopeful than the World Bank was contacted. Brian Falconer The Authority, then led by many more in fulfilling the mandate to give hopeless. A PhD in analytical chemistry specializing (World Bank Representative) came to Uganda Aryamanya, scored a coup Ugandans a better environment. in polluters of the environment, he has been the face from Washington DC in 1989, and we worked in getting the Government of Uganda’s environmental battles for a quarter of a together to prepare a National Environment Ac- century, and has seen the worst and the best of it. tion Plan.” be put in place, and use its contacts with other donors like USAID, NORAD, SIDA and UNICEF The Government adopted a National Envi- The best includes Government’s enactment of an en- The Government adopted a National Environ- to prepare the Action Plan. Preparation started ronment Policy in 1994 to collect, analyze, vironmental policy, and the World Bank-backed es- ment Policy in 1994 with the objective to collect, in the early 1990s and an appraisal mission was tablishment of the National Environmental Manage- analyze, store and disseminate reliable informa- launched in 1994 to look at a management and store and disseminate information on en- ment (NEMA), which Aryamanya headed for a long tion on environmental management. In 1995, capacity-building project. That project started in vironmental management. time. the National Environment Act put in place the 1996, being the first Bank-lending specifically institutional framework that established NEMA, aimed at the environment in Uganda. “There was political will”, he says of the late 1980s, a semi-autonomous body charged with the coor- to permit, and the World Bank to commit, to when he returned to Uganda from the US to take dinating, regulatory, and compliance mandate Its objectives were to build capacity at national, building a head office for the organization. “Gov- up a position in the nascent Environment Ministry. for environmental management. district, and community levels through estab- ernment policy was that institutions should not “1986 was the first time Uganda had a Ministry of lishing NEMA, and strengthening selected dis- own buildings. But the World Bank was giving Environment. At this point forests and game parks Aryamanya, then the Chief Environment Of- tricts in initiating communities to address natu- NEMA money to rent. NEMA convinced the had been encroached on, and species were endan- ficer at the Ministry, was on hand as the Bank ral resource degradation in their areas. The Bank Government to use the Bank cash to build our gered or extinct.” provided seed money in 1991 for task forces to provided $15 million for this. own home,” recalls Aryamanya. 162 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 163 Game Parks: Conservation (Clockwise from left) After: The mu- ral of an alpha male painted on the wall of the new head office that pro- voked the envy and aggression of the territorial silverback. Before: The old wooden shack that served as Bwindi’s head office before PAMSU funded a new facility. The new staff quarters at Queen Elizabeth National Park. Photos/Laura Walusimbi Bwindi National Park’s Head Office Hosts imaginative designer painted a life-size picture world’s total of mountain gorillas. Another 480 go- Protracted Gorilla War of a silverback gorilla prominently at the front. rillas inhabit the three-country habitat that consists of the national parks of Mgahinga in Uganda, Volca- This is what bred problems. Pontius Ezuma, noes in Rwanda, and Virunga in Congo. Bwindi’s Conservation Area Manager, recalls: “The painting alarmed the habituated family, Under PAMSU, Bwindi, Queen Elizabeth, Murchison the Rushegura Group, which normally forages Falls, and Kidepo Valley NPs have had infrastruc- This war bore no resemblance at all to the others that Bwindi Impen- around here. When Rushegura’s leader, the sil- ture upgrades, including new head offices, bound- etrable National Park, home to nearly half of the world’s mountain verback, came here, he took up combat posi- ary markings (600km of boundaries surveyed and tion nearby. When he first saw this picture, in 1,157km of boundaries marked), engineering work- gorillas, has known. his mind he thought that his family was already shops, staff housing, road equipment, water treat- gone. Because in the field the stronger you are ment plants and pumps, electricity transformers, (as the alpha male), the higher the chances are to Before it was designated a national park in 1991, As part of the $27.0 million credit and $8.0 mil- have all the females and family members. So the Bwindi had witnessed incessant conflicts with the lion Global Environment Facility grant, the Pro- Rushegura Group stayed around here for one full “The painting alarmed the habituated local community for access to the forest’s resources, tected Areas Management and Sustainable Use week, with the senior silverback regularly charg- family, the Rushegura Group, which including outright arson. Beyond access there was (PAMSU) project constructed head offices in ma- ing at the painting till he realized that his enemy normally forages around here.” even very bloody gunfire at the massacre of eight jor national parks, as well as the headquarters of was not reacting.” tourists by Rwandan Interahamwe rebels in 1999. the Uganda Wildlife Authority in Kampala. Today the Rusheguras still forage in the area, but and operational support in law enforcement and But in terms of sheer drama none of these can rival At Bwindi, in the south-west, just 4km from the family head silverback totally ignores his in- community conservation. PAMSU funded the con- the week-long non-fight observed in 2009 between a the border with Congo, the standard-shaped of- animate rival. struction of more than 160 structures, including of- bossy silverback gorilla, and a supposed rival, a con- fice, similar in design to other game parks’, was fices, staff housing, new boreholes, and upgrading test the World Bank and the Global Environment Fa- built on the north-westerly edges of the vast The Rusheguras are part of the 400-strong pop- cility can take credit for. 330 square kilometer conservation area. But an ulation in Bwindi, which makes almost half the CONT. ON PAGE 166 164 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 165 Game Parks: Conservation (Left) The Protected Areas Management and Sus- tainable Use (PAMSU) project constructed Queen Elizabeth National Park’s head office. Photo/ Laura Walusimbi (Below left and center) Chimpanzees and giraffe at the PAMSU-assisted Uganda Wildlife Education Centre in Entebbe. Photos/David Sseppuuya (Below) The motor workshop at Queen Elizabeth National Park that maintains the park’s machin- ery. Photo/Laura Walusimbi (Bottom) Maintenance work using a PAMSU-fund- ed earth grader on Bugungu Airstrip in Murchison Falls National Park. Photo/UWA-Murchison Falls NP Bwindi Park’s Protracted Gorilla War CONT. FROM PAGE 165 A very practical approach has been the revenue- sharing arrangement, in which the national generators, at a cost of $13.3 million. About 50% of parks give 20% of their earnings to local com- staff and 90% of protected areas now have good of- munities, which has done wonders in involving fice infrastructure. the villages in conservation and appreciating the need to be partners and not enemies of wildlife. The project also trained more than 1,500 rangers and 200 senior staff, all leading to more cost-effec- For instance, in April 2013, Bwindi National tive management of Uganda’s wildlife and cultural Park passed on shs661 million ($270,000) to the resources. As a result, Uganda Wildlife Authority’s districts of Kisoro, Kanungu, and Kabale, which revenues increased from shs5.8 billion in 2002/03 to neighbor the Mghahinga-Bwindi conservation shs26.8 billion in 2010/11, an increase of 364% in area. eight years. 166 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 167 Uganda’s Gorillas: Conservation gorillas. takes about two years to get them friendly to hu- man beings. The other way which we have now used is the fe- cal samples which are taken and analyzed in the Habituation was done from 1991 to 1993 and laboratory after which the DNA is picked out. So tourism started. That year 1,321 visitors came this (latest census) we are even getting more ac- to see the gorillas. Last year (2012) we had curate numbers, we now know at least there are 18,000 tourists in Bwindi. We have increased 400 individuals in this park. the number of habituated groups. Now we have ten habituated gorilla groups to diversify and Q: What does the DNA tell you? increase the experience, and now we are begin- ning to realize the value of this protected area. The DNA will tell you the individual because like By law we are supposed to give 20% of gate col- my DNA will not be similar to yours so when we lections to the community. So from Bwindi alone collect all these fecal samples and when the DNA we gave to the local communities over $250,000 (Above) Pontius Ezuma has built up experience is picked out, it will show you this is so-and-so from about three years collection (see story next in gorilla conservation. (Left) a magnificent ape and I will be totally different from you. So that is page), so now they are beginning to appreciate foraging in the Bwindi Impenetrable National what we are using currently. the need to protect wildlife. Park. Photos/Laura Walusimbi, World Bank Ar- chives Q: Bwindi has been a partner with the Q: How does the community use those World Bank. Can you tell us something about that partnership? financial resources? be looked after by the Congolese rangers. The World Bank has assisted us in infrastruc- With our community conservation department ture development, particularly the office, staff and the local governments in their respective Q: Are you in touch with the Congolese accommodation, and in marking the park area areas, at village level they raise their needs and rangers; do they tell you that they have boundary. There are areas that were problem- write project proposals, things that would be atic, we had to plant canes or boundary mark- very useful to them to improve their lives. That No Passports, No Visas crossed? ers, (and in) those areas we have avoided conflict has to be approved at the parish level, and then That is what normally occurs but at the moment with surrounding communities. People would the sub-county, and eventually to the district with the confusion in Congo, we are not really in come and claim, “This is where my land is”, but where the Chief Administrative Officer writes to touch but good enough all the gorillas are (cur- now they know the canes are right there and no us. A tourist pays $500 and 20% of that goes for Border-Crossing Gorillas rently) on our side. one is tampering with our resource here. Bwindi is a World Heritage Site, a property that belongs to the community, and it is banked separately. When it accumulates we disburse it. Q: What is the approximate number of to the globe. So anything that we do wrong here gorillas in Bwindi? will endanger humanity. So the World Bank Q: Any specific projects that communi- contribution is appreciated. Before the World ties have raised? Pontius Ezuma, the Conservation Area Manager for Bwindi-Mgahinga We carried out a census, the results were actually Bank came in we had no office; most of our staff Conservation Area, is overseeing park operations within the two pro- given to us this year (2013); we have a popula- were coming from their homes, but now because Many. In Mpungu the sub-county headquarters tion of at least 400 gorillas in Bwindi alone. of the houses we have some staff here, though was built out of that money, and a number of tected areas, Bwindi Impenetrable National Park and Mgahinga Go- some are still without accommodation. schools have been built, but now we want to fo- rilla National Park. Q: Is that an increase or…? cus on the livelihood of the individuals who are Q: What sort of tourist numbers do you impacted by the presence of the park. It is com- It is an increase because the previous census in get? munities that are touching the park boundary 2006 we had a population of only 340, so when because that is where we see wildlife come out, Q: Bwindi and Mgahinga share the same About 4-5km away from the common border if we register 400, it is quite a significant improve- Our numbers have actually increased over time. they destroy crops, and so how do these people eco-system. How far apart are they? you are to take a straight line. ment. Tourism in Bwindi started in 1993, it was gaz- benefit from this park? Those are the key people, zetted as a national park in 1991, and earlier and with time when revenue increases we shall Mgahinga is about 35km away; it is one trans-bound- Q: So do the gorillas cross to Congo? Q: How is a gorilla census carried out? than that there was a lot of activity going on begin to expand. ary protected area, on the western side it is shared here, there was lumbering. What you have today by the Democratic Republic of Congo (DRC). Rwanda Yes they do. It is the same ecosystem and the We use two approaches, termed as indirect way would not be if the status of this place was not Q: So you have not done any livelihoods and DRC are on the southern part. On the DRC side interesting bit is that for gorillas there are no of counting wildlife. The forest is divided into changed. When eco-tourism started, basic in- yet? it is called Virunga National Park and on the south- boundaries. On the other side in DRC there is a several sub-sectors, small units and people walk frastructure was developed within this area, the ern part with Rwanda it is Volcanoes National Park. wildlife reserve called Sarambwe, where the go- in every sector, which has been plotted and dur- communities were told not to go to the forests We are now going to things like giving commu- rillas commonly go and once they go to the other ing that exercise they walk to where the goril- and cut timber, and of course it caused a lot of nities goats, to rear instead of now going to kill Q: And even where we are (Bwindi), we are side we have a trans-boundary arrangement with las slept, and pick samples of their dung which concern among the community. But at that time a duiker (antelope) in the forest. They can now not far from the Congo border. Is that right? the Congolese, so once they cross there they will is layer-analyzed to give us the total number of gorilla groups were habituated here. Habituation slaughter goats for their animal protein. 168 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 169 Community: Conservation Willdlife Authority officials and Kisoro District administrators displaying a dummy check at the handover of tour- ism earnings to the local community on April 5, 2013. Photo/UWA shs4.4 billion ($2.4 million). Since the revenue sharing program start- ed, several projects including classroom In Bwindi-Mghahinga, Pontius Ezuma, the conser- blocks, health centers, provision of clean vation area manager says that aside from the 20% water to communities, rehabilitation of gate revenues, “$5 from the tracking permit is given roads and bridges, as well as livelihood to the local governments to support them in vari- improvement projects such as goat rear- ous projects identified by the surrounding commu- ing, bee keeping, provision of Irish pota- Park Communities nities that are impacted by the presence of the park and who impact the park. These would be the first parishes outside the park.” to seed have been implemented in com- munity areas around protected areas. Since 2009, the focus has also changed to Benefit From animal control projects like elephant de- terrent trenches around Queen Elizabeth and Murchison Falls National Parks that Revenue Sharing have helped to reduce the human-wildlife conflicts. Gate Revenues (Shillings) Shared with Neighboring Communities mensions including those related to poverty. Is it better to land in the hands of conservationists or the jaws of a predatory car- Protected Area Funds released nivore? The communities surrounding Uganda’s many game parks seem unanimous The communities near the parks would benefit from between 2002 and 2010 that the former is preferable, and have gone on to become participatory beneficia- potential access to income generation opportunities, • Murchison Falls 1,403,516,296 particularly for women’s groups who can sell crafts; ries of improved wild game tourism. education opportunities; improved infrastructure; • Queen Elizabeth 1,541,913,370 improved advocacy in local decision making pro- • Bwindi Impenetrable 425,798,525 cesses; and increased access to resources from non- In April 2013, three communities – the south west- munities around the national park. governmental organizations and community-based • Lake Mburo 413,990,811 ern districts of Kanungu, Kisoro, and Kabale – in the organizations. Neighboring communities also realize • Rwenzori Mountains 72,253,100 Bwindi-Mghahinga Conservation Area walked off A little farther north of Bwindi-Mgahinga, in the substantial benefits from the sharing of gate revenue • Mt. Elgon 110,081,550 with shs661 million ($264,000) in revenue sharing Queen Elizabeth Conservation Area, Joan Ka- from parks. from the takings of the Uganda Wildlife Authority bazira, 19, dusts the curios in her tiny roadside • Mgahinga NP 96,278,775 (UWA). And so it should be. shop. Her one year-old son Arafat gazes gently at As part of the community conservation program in • Kibale NP 285,178,756 the varied curios on offer – wooden sculptures of many parks, the UWA initiated programs to pro- The conflict between man and wild animals is as old Africa’s Big 5 (lion, elephant, buffalo, rhino, and vide poachers, gold miners, smugglers (and others • Semliki NP 22,200,000 as time. While it has been partly solved by urbaniza- leopard), dancing men in tribal gear, cups and engaged in illegal activities in the parks) alternative • Toro-Semuliki WR 25,739,500 tion and the creation of conservation areas, it is still plates, ornamental earrings and bungles, and work and livelihoods if they stopped their illegal prevalent as it breaks out sporadically every so of- even the odd handbag. activities. UWA‘s anti-poaching campaigns have re- • Grand Total 4,396,950,683 ten. Uganda has many game parks, located around sulted in the exchange of illegal hunting equipment the geographical spread of the country. Each general A school dropout, she has nevertheless found in most Protected Areas for access to improved alter- location has fairly dense human habitation, and so worthwhile employment in this shop, a few hun- native livelihood options (like market development, the probability of a clash is always there. Uganda is dred meters from UWA’s park head office, selling goat rearing, ecotourism, and others). Some of the the fourth most densely populated country in Africa curios to tourists. Competition is high. “Other alternative work included direct contributions to with 85 people per square kilometer, most are largely people in the neighborhood have picked up ideas the parks such as maintaining mountain trails and dependent on smallholder agriculture for sustenance and skills,” she says of the shop, set up a few removing invasive species. These programs have em- (85% of the population is rural), and with a high pop- years ago by an enterprising HIV orphan. powered communities to protect the parks. ulation growth rate. At the same time Uganda ranks in the top ten nations in Africa in variety of animal PAMSU aims at ensuring the effective, long- PAMSU also pushed for the implementation of the species for all major groups, and among the top ten term conservation of Uganda‘s biodiversity in provision that 20% of gate revenues were allocated in the world for mammals, including about half of the face of competing economic pressures. to the local communities. This sharing of revenue the known world population of mountain gorillas. helped win community support for the Protected The project design is consistent with guidance Areas, which meant greater compliance with grazing To mitigate this human-animal conflict the Uganda from the Conference of the Parties for the Con- restrictions in the parks and greater cooperation in Wildlife Authority, with assistance from the World vention on Biodiversity as it addresses key im- reducing poaching of animals. The PAMSU Project Bank’s Protected Areas Management and Sustain- peratives in conservation, including capacity built capacity within UWA and District Local Gov- able Use (PAMSU) Project is working on improving building; strengthening the conservation, man- ernments to plan and manage the 20% gate revenues Uganda’s ability to attract tourists to its wildlife agement, and sustainable use of ecosystems and under the Revenue Sharing Program. and cultural heritage and encouraging cost-effective habitats; strengthening the involvement of local management strategies while also engaging the com- and indigenous people; and integrating social di- Between 2002 and 2012, the total collected was Source: World Bank Sub-Saharan Africa Tourism Database 2012 170 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 171 National Parks: Conservation Uganda’s Rich Game Parks Heritage The headquarters of the Uganda Wildlife Authority in the Kampala suburb of Kitante. UWA’s head office was constructed under the World Bank-funded PAMSU project. Photo/Laura Walusimbi In April 2002, Uganda took an IDA credit of $27.0 million and life, four of the Big 5 - no rhino). At the time, the Ugandan secured a Global Environmental Facility grant of $8.0 million Wildlife Authority (UWA) was not operational. to finance the Protected Areas Management and Sustainable Use (PAMSU) project. Its objectives were to support the sus- The 1996-1999 period was particularly difficult for the nation- tainable and cost-effective management of Uganda’s wildlife al parks as the number of visitors declined, encroachment and and cultural resources, through a combination of providing poaching escalated, staff morale was low, and there was ram- funds for improving the country’s ability to attract tourists to pant revenue leakage and misuse of resources. Officially, there its wildlife and cultural heritage, while also encouraging cost- was a Wildlife Act, but there were no wildlife regulations, no effective management strategies so as to reduce overall operat- wildlife policy, no UWA corporate plan, no UWA management ing costs of the institutions managing these resources. plans and no budgets. In the 1990s, a number of new national parks were created PAMSU was the second phase of World Bank support to the out of areas that had been forest reserves, including Rwen- Government Conservation and Sustainable Tourism (CAST) zori, Bwindi, Mgahinga, Semliki, Kibale and Mt. Elgon. These program. CAST was the Government’s umbrella program to were an addition to the older parks like Budongo Forest Re- support conservation of the country‘s wildlife and cultural serve (forest walks, large chimp population, birding hotspot), heritage and assets and to implement the Integrated Tourism Katonga Wildlife Reserve (canoe and walking safari, antelope Master Plan (ITMP). ITMP was based on Protected Areas as species, a few elephant and buffalo), Kidepo Valley National the primary tourist attraction, with a secondary emphasis on Park (giraffe, cheetah, antelope species, four of the Big 5 - no cultural assets. The plan emphasized that growth in the tour- rhino), Lake Mburo National Park (boat, zebra, mainly ante- ism sector should follow a modest pace corresponding to the lope species, lion present but rare), Murchison Falls National rate of recovery of the underlying natural assets (in particular, Park (boat, waterfall, abundant wildlife, four of the Big 5 - no animal populations) and the rehabilitation and expansion of Source: Uganda Wildlife Authority rhino), Queen Elizabeth National Park (boat, abundant wild- the supporting infrastructure. 172 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 173 Forests: Environment (Clockwise from left) A giant native species of tree pierces the canopy of the 32-acre Buso Recreation Forest, a private conservation ef- fort operated by Tropical Environment Founda- tion (TEFO) in Wakiso district, Central Uganda. Another local variety is labelled in scientific and local language, and for its application. TEFO for- ester Dan Kabanda, a Nyabyeya Forestry College graduate, points at twin trunks growing from one set of roots. Photos/David Sseppuuya Forests are the Lungs of City and Village It is estimated that Uganda loses about 80,000 hectares of forest every The Rehabilitation of Natural Forest Management component led to improved conservation and man- year to unsustainable logging for firewood and charcoal, and in clear- agement of natural forest resources and resulted in ing for human settlement, agriculture and industry. The foundations a steady increase in recorded production from selec- for conservation and sustainable productive management of natural tive felling in natural forest reserves. The lengths of forest boundaries treated exceeded targets, which forests in the long term, but with less emphasis on production benefits contributed markedly to restoring the integrity of and income generation in the short term, were laid with the Forestry forest reserves. The identification and demarcation of nature reserves and associated buffer zones was Rehabilitation Project, effected in 1988 with a $32.2 million credit. given priority, and 50% of all forest reserves were as- signed to these categories. This emphasis in opera- tions, combined with improved boundary control, mitigated against forest production and charcoal- making, both legal and illegal. There was enrichment planting within intact forests The Forestry Rehabilitation Project’s main objectives the Forestry Department (FD), and create the and plantings within encroached forests. Experience were to: Increase the production of wood fuels and management and information base for long- shows that adequate natural regeneration often re- poles for the urban population; increase the produc- term planning, development and conservation moves the need for planting, and requires less fol- tion of wood products for the rural population and of Uganda’s forest resources. low-up and maintenance inputs. conserve soil fertility; manage and conserve Ugan- da’s natural forests for sustained timber and charcoal To achieve these objectives, the project included Human resource foundations were laid through the production by the Private Sector, as well as improve components for peri-urban plantations and pilot rehabilitation of Nyabyeya Forestry College in order revenue collection from logging, environmental pro- wood farms (financed by NORAD); farm forestry to provide in-service training – the growth of num- tection and nature conservation. (co-financed by DANIDA and CARE); rehabilita- bers of trainees, preparation of training material, tion of natural forest management (financed by awarding fellowships and study tours, and conduct- It also set out to increase the productivity of soft- the EU); rehabilitation of softwood plantations ing in-country training, were particular successes. wood plantations for sustained production of timber (financed by IDA); strengthening of the FD (fi- by the Private Sector, and encourage a shift in exploi- nanced by IDA); and training (financed by IDA There was also the rehabilitation of Nakawa sawmill tation of timber from natural forests to softwood and UNDP). Government contributed counter- in order to provide training in mill and logging op- plantations; and to provide institutional support to part funding towards the financing of local costs. erations. 174 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 175 Drainage: Environment (Clockwise from left) Dredging work on the Lubigi Channel, astride the Northern Bypass circular in Kampala. Jennifer Musisi, the Kampala Capi- tal City Authority Executive Direc- tor (in black), being shown the progress of the $9.6 million work on Lubigi by World Bank officials, April 2013. A section of the Nakivubo Channel draining Kampala’s Industrial Area. Photos/Laura Walusimbi flooding. On commencement in 1999, the $22.38 million credit for Nakivubo Channel was the largest civil works project ever undertaken by Kampala City Council. In mid-2013, the $9.6 million Lubigi Chan- nel was at 66% completion. Both are vital works, given that they heavily influ- ence social and economic activity in Kampala, where an estimated 80% of the country’s Industrial and Services Sectors are located, and which generates Nakivubo, Lubigi Channels more than 50% of Uganda’s GDP. Infrastructure bottlenecks in Kampala therefore become even more critical to the national economy. The Understated On Nakivubo, 8.73km of channel was de-silted and rehabilitated, culverts and bridges widened to ac- commodate new channel widths, and larger foot- Arteries of a City bridges were built at strategic points. Four auxiliary drainage works were done at the Clock Tower Inter- section, Lugogo/Uganda Manufacturers Association showground, Kafumbe Mukasa/Kisenyi Lane junc- tion, and Makerere Road/Aga Khan School. Some 27 ‘black spots’, places prone to accidents and incidents, Initially built on seven hills, and now spread over anything up to 46 were de-silted and widened to enhance storm water flow and minimize traffic congestion. hills, Kampala City has many arteries draining it, but none more vi- tal than the Nakivubo and Lubigi channels. The city’s other primary A Kampala Drainage Master Plan study that sur- drains are Nalukolongo, Kinawattaka, Kitante, and Luzira. veyed and updated the city’s drainage systems and related environmental, social and economic issues was produced, giving a 20-year projection. Alongside it was the Kampala Urban Transport Improvement Program study (KUTIP), providing a framework for inter-linkages between roads, drainage and trans- Nakivubo drains the Central Business District, and peri-urban settlements took up place on its pe- portation. remains the most visible of them all, and therefore riphery. the most inconvenient when not maintained well. The work on the 3.6km stretch of Lubigi is to drain The flooding that results from poor maintenance The World Bank has supported work on these from Gayaza Road to Hoima Road, on the northern has, in the past, affected the road network, the flow two vital arteries. Nakivubo’s rehabilitation outskirts of the city. Culverts that are 1.5m high are of traffic, economic activity, and overall living condi- was part of the Government of Uganda’s Public enhancing water flow, though at project time there tions. Lubigi’s critical status was enhanced with the Investment Plan and, in partnership with the seemed to be the small but surmountable inconve- completion of the Northern Bypass Road Project, as Bank, was recognized for the urgency to tackle nience of the water hyacinth in given places. 176 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 177 Finance Minister: Insider’s View INSIGHT SEV EN Maria Kiwanuka Infrastructure, Productivity, Skills fected demand for our exports; we had price in- creases due to increased demand for our food in the Eastern African region due to a drought in Uganda’s response to the global economic crisis has been to switch from Enhancement is the Horn of Africa. It was really difficult, but the Bank of Uganda did what it could to reduce the central bank rate as a mechanism for dampen- exporting to Europe produce like fish and fresh flowers, to emphasizing export of dairy products such as milk, cheese, ice cream, butter, and yoghurt to Eastern Africa. Photo/David Sseppuuya the New Emphasis ing demand for credit. The Ministry of Finance kept spending low so as not to upset the central bank’s efforts. is fixed in size and yet our population is growing. So Q: Was Uganda insulated from the by using agriculture, we then hope to stimulate job global crisis? creation, export value and since agriculture is prac- ticed all over Uganda, to better distribute income. We were pretty much insulated since our finan- But for that to happen the Government had to de- cial system was not inextricably connected to termine that it is going to concentrate on scarce re- global financial institutions. The effects were sources in areas that will unlock that potential. passed on from our major trading partners like India and China. What we experienced was a Q: What is the Government’s main role? drop in demand in traditional export markets in Europe, the Middle East, and USA. We refocused The Government does not create jobs; in fact it ra- our export market to the region and moved away tionalizes. So what the Government could do is go from exports to Europe like fresh flowers and in for those bulk public goods that the Private Sector fish, to beans, maize, and dairy products, which cannot do. The roads, the power stations, the large are demanded in Eastern Africa. Transport costs irrigation dams, where capital outlay is immediate, are lower and fortunately staple foods have in- and the benefits don’t accrue to the person but to elastic demand. everyone who uses the road or the electricity. Q: What are the current challenges? The second task is to do research and development, and make sure that the fruits go from the laboratory Photo/David Sseppuuya Maria Kiwanuka has been Minister of Finance since Uganda grew very fast. In the years up to 2011 to the field. You can open a newspaper and read that it was one of the fastest growing countries in the local researchers have found another disease-resis- 2011. She is also an entrepreneur. She worked Q: You ascended to the Ministry when world, but the growth was not well distributed. tant hybrid of maize, then on page 5 you read that a for the World Bank for 10 years in the 1980s and Uganda was heading to its worst eco- So what we are doing now, as we have recovered maize blight is sweeping across some part of Uganda. nomic crisis in 20 years. How would you 1990s initially under the Young Professionals’ describe the crisis? to 5.1% and looking at 6% growth this coming There is some disconnect, and so Government has to financial year, is to make sure it is more sus- make sure that that research is exploited. We are go- Program which took in 50 young professionals a tainable. And so we are looking at agribusiness. ing to re-establish extension services; these are now year at Master’s degree level and fast-tracked A crisis by definition is unexpected. It hit about two Farming must be done as a business, to encour- taking place in the fields, not in hotels and in work- or three months after I was appointed minister. So age value addition into agricultural production shops. NAADS is going to be restructured. them into management. She worked mostly in I was not prepared for it, but since it came along we so that export prices increase, and by going into East Asia, Burma, Malaysia, Indonesia, and also had to address it. Inflation rose from around 5% to agro-processing, to increase the number of jobs in Southern Africa and Tanzania. 31% in six months; the global economic crisis af- generated by every acre of land because the land CONT. ON PAGE 180 178 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 179 Finance Minister: Insider’s View Infrastructure, Productivity, Uganda’s youth were tak- Skills Enhancement is Uganda’s Youth Take Bulk of Pay, and Occupy Most of Jobs ing a proportionate share of jobs. Source: Uganda The New Emphasis Bureau of Statistics, Na- tional Household Survey, 2009/10 100.0% 3.8% 5.1% 13.7% 10.8% 120.0% 90.0% 18.6% 6.6% 80.0% 37.2% 100.0% 13.0% 26.7% are very good at listening. In June 2013 we had a 70.0% 46.5% CONT. FROM PAGE 179 meeting to discuss the Country Assistance Strat- 36.9% 60.0% 80.0% 28.5% egy for the next three years. We listed our priori- 50.0% The third area is skilling. We need technical skills to ties: skilling, infrastructure and productivity. So 60.0% 40.0% 77.6% empower the agricultural revolution - the welders, they said fine, and we sat down and discussed. 59.5% 57.7% 30.0% the carpenters, the electricians. Where are all these 40.0% 56.4% 58.5% 42.7% 20.0% when we have lawyers and social graduates walking Q: Donors have cut Budget Support. 10.0% unemployed on the streets? That is the mindset we What is the effect of that? 20.0% 0.0% have to change, not just the youths’ but their parents Agriculture Non-agric Self Non-agric Family Wage 0.0% as well. This is something I have heard and read a lot Wage Non-Wages Employed Helper about, and I have chosen to keep my peace be- 15 to 34 35 to 54 55 plus 15 to 34 35 to 54 55 plus With those three - infrastructure, productivity, skills cause it was not a cut; it was a redirection. In enhancement - we will be able to provide a very sta- the (FY14) budget speech, I said the Govern- ble macroeconomic framework. ment is discouraging Budget Support and en- Q: Since those are remedial interven- the unfortunate problem we are experiencing couraging more Project Support because Project tions, do you have indicators which show Support is more feasible, it has quick benefits. now of delayed salaries will not happen again. Jobs Not Necessarily in High Productivity that actually they can work? With Budget Support you may say, ‘Okay I am Q: Any other progress? Sectors with high productiv- going to train some officials’.But your speed is ity are not necessarily high Yes, I am glad to say that as we speak Uganda’s credit constrained. Because if you construct a road Energy efficiency: Umeme has installed prepaid employers: Uganda 2003- rating is back at stable, which is shared by almost no other country in Africa. We have just shared our Pol- then the traders, the farmers, the transporters, meters now so that a customer will know that 2010. Source: Uganda Bu- icy Support Instrument with the IMF and you know people going to school can use it, but what about reau of Statistics, National they are paying for the energy they have used how strict the IMF is. It is a three-year program maintenance? All our roads have a maintenance Household Survey, 2009/10 and not what is lost in the system. We are work- whereby they don’t lend you money if you don’t have component, so (under the new project arrange- ing on an employment strategy; it is not enough a bankers’ report. We have finished the first one, we ment), if we contracted you and you do shoddy went into the second one, it was approved - so that is to say jobs, jobs. We need to say Uganda has a work, you are stuck with the maintenance needs. youth bulk; Uganda has an education curricu- for another three years. Our credit capacity has been expanded because we are only going to borrow for lum, but may be it is not best-suited for the mar- productive ventures, so I think Uganda right now is Q: How far has the Ministry gone to ket needs. Uganda needs to learn lessons from in a much better place than it was. meet donor demands in relation to other countries. So we shall bring together Gov- donor support? Q: Does Uganda still need to rely on the ernment agencies and the Private Sector, which World Bank? Is the World Bank part of the I don’t think there are any donor demands as employs at least 80% of the work force, the Di- process? such. In the Budget Speech of 2012/13, I ex- aspora, which not only sends money home but pressed accountability measures that we had brings skills and experience we can learn from, Oh very much so, and World Bank is not just a come up with following the first Auditor Gen- and the Development Partners. By mid-2014 lender. It is the biggest multilateral agency that we should have the employment strategy to of nutrition, and maternal health will be tackled. just 50 years in Uganda. It has experts in ev- eral’s report. We said we are going to focus more ery field, but we have agreed with the World we deal with and as a multilateral agency we can on infrastructure rather than capacity building. start employing our unemployed Ugandans in a Q: The World Bank is celebrating 50 years Bank that they don’t have to have all their draw on its experience of lessons learnt around Accounting officers were tasked to take respon- more systematic and large scale apprenticeship. of partnership with Uganda. What would departments active in Uganda. Concentrat- the world. If you have a problem with a project or sibility for the money spent by their ministries you like Ugandans to know about this part- ing on infrastructure like roads, energy, edu- policy, the Bank, with their experience will tell or agencies. There are lots of things we said And health - malaria is the single biggest curse. nership? cation, skilling and tourism is sufficient. you, “We have something that happened in Cen- and what resulted from the corruption scandal Low production, early childhood problems, tral Europe, Asia, West Africa that can help you.” maternal health all come from it. So again by I think it is very good; it is very productive. The Gov- The Agriculture Sector in the books is receiv- in November 2012 is that we had to accelerate mid-2014 the Government will have a sub- ernment has set macroeconomic goals and the Bank ing 4% (of budget allocations) but when you implementation. There was no more argument stantive program to eradicate malaria. All De- is working within those objectives of skilling, infra- add up the agricultural roads, the dams that Q: The World Bank was criticized for the from anybody. We improved our computer velopment Partners who are active in the structure, and productivity. I think the World Bank produce electricity for processing, training Structural Adjustment Program (SAP). Do systems, we are linking the Government pay- Health Sector have been asked to assist us de- like any other development partner is there for us, to institutions under the Ministry of Educa- you think they could have done better? roll to the Ministry of Finance so in the future velop a substantive strategy. If we do that our tell us how they can assist us, and for that I appreci- tion, you find agriculture is taking a lot of pay will be going directly to the recipient and health bills will go down, productivity will go ate them. I appreciate the fact that it is a multilateral funds. My experience with the Bank’s office here is that they up, and the Millennium Development Goals lender with experience from all over the world, not not the ministries or districts. For instance 180 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 181 FINANCE & TRADE Finance and Trade SE CTIO N E IGHT Reform continues to be the key approach to the management of the Finance Sector. Improving and harmonizing Government plan- ning and budgetary processes, strengthening financial manage- ment through improving accounting processes, tracking develop- ment performance, and monitoring Government service delivery and the impact of public expenditure on poverty trends, are some of the key focal points 182 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 183 Central Bank: Finance & Trade Reforming Central Bank Key to Stabilizing Economy Uganda marks 50 years of partnership with the World Bank at the two decades of chaotic foreign exchange opera- through operations in the markets. A single currency, under the supervision of height of efforts to establish the East African monetary union that tions that had perpetuated economic distortions the East African Currency Board, existed could culminate into the development of a single currency. caused by multiple-tier foreign exchange deal- The 2009 World Bank report on Uganda’s Finance at the Independence of Tanganyika, Ugan- ings that inevitably fomented massive corrup- Sector entitled ‘Making Finance Work for Uganda’, da, and Kenya. Monetary union might be tion in international trade. however still found the country’s banking sector to returning soon. Photos/David Sseppuuya Uganda’s FY13 Economic Growth: A recovery, but not as good as the neighbors’ Intra-region Exports Within East Africa Have Overtaken Trade With Traditional Export Markets in Europe then affect the exact nature of the central bank- ing sector. Indeed the first periodic ‘Uganda Economic Up- date’, launched in March 2013, demonstrated that (and how) harnessing the potential of ex- panding regional trade can help the country to renew growth and expand employment opportu- nities. The dynamics of regional integration have become a necessary component of any financial sector strategies that the country may consider. After the fundamental economic reforms began in 1987, it became abundantly clear that insti- tutional weaknesses were hindering achieve- ment of the intended objectives, with inflation running out of control and general stability still eluding the economy. In 1991, the World Bank issued the Financial Sector Review, providing the framework for restoration of confidence, dis- credit and generally get more of the population cipline, and stability in the economy. It explicitly into the banking system. The Bank also provided recommended that the Bank of Uganda should guidelines on modernizing the remittances and have its authority and autonomy guaranteed in payments systems in the economy, which was Source: Uganda Bureau of Statistics, WDI & order to play its rightful role as the monetary found to be still heavily reliant on hard cash Global Economic Prospects, December 2012 authority in the country. The review also gave transactions. direction on how to rationalize the operations Source: Comtrade/World Integrated Trade Statistics (WTI) and WDI of the then parastatal Uganda Commercial Bank Other major components of the Finance Sector It is interesting to note that in the World Bank’s first and the Cooperative Bank. It also provided the that still need to be worked on include long- major analytical report on independent Uganda is- roadmap for the establishment of a capital mar- The central bank has also managed to firmly be “generally sound but inefficient”, still very term finance with a more meaningful role for the sued in 1964 and titled ‘The Economy of Uganda’, ket. and efficiently supervise the operations of com- poor in mobilizing domestic savings but relying Pension Sector, and the operationalization of a one of the key recommendations was the creation of mercial banks. Besides direct supervisory ac- too much on dealing government treasury bills regulatory authority over the National Social Se- a strong central bank. But this would only be after Soon after, the ‘refreshed’ Bank of Uganda was tions over the financial institutions, the Bank instead. The Bank’s report gives pointers on how curity Fund. Attention also needs to be focused determining the character of the regional integra- able to provide clear supervision over the newly of Uganda has skillfully regulated the financial to help it expand into the dominant sector of on growing and development of housing finance. tion East Africa would build, whose outcome would liberalized foreign exchange market and ended markets for capital and for foreign exchange agriculture through efficient provision of rural 184 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 185 Borrowing: Finance & Trade Private Sector Credit Reference Bureau Returns Takes Seat Sanity to Financial Sector at Table Following the bank failures of 1998-1999, which resulted in the clo- together with maintenance fees and monthly li- The Bureau, furthermore, is assisting While divestiture and privatiza- cense fees for the two systems during the first institutions to improve credit appraisal sure of five commercial banks, the Bank of Uganda embarked on year of the project. A total of 27 commercial in particular and overall credit risk man- tion were being adapted as key a comprehensive review of the legal, regulatory and supervisory banks, credit institutions and micro-finance in- agement, enhancing the quality of loans policies for economic recovery, stitutions accessed this funding on submission and advances in the financial system, framework in order to enhance its capacity to fulfill the statutory of required documents to the Private Sector and is also increasingly strengthening the initial strategizing was done mandate of fostering a sound financial system that guarantees safe- Foundation. the country’s credit culture. by the Government and the World ty of depositors’ funds. Bank. Through a tendering and evaluation process, Another positive consequence of the BOU approved M/s CompuScan Information CRB is the triggering of institutions to Technologies (PTY) Limited of South Africa as improve on the information they collect the CRB provider in 2006. Given the small size on their clients, thereby complementing of market, the license was awarded an exclusive their ‘Know-Your-Customer’ efforts and basis for a period ending September 2012. getting to know the borrower’s debt re- payment profile. In the absence of a National Identification Sys- tem, it was deemed necessary for the CRB pro- For the country, one big benefit has been vider to develop a smart card system to uniquely the improvement of Uganda’s ranking in identify borrowers using biometrics. Each bor- the World Bank Doing Business Indica- rower was therefore required to register on the tors. At the start of the CRB Project in FCS, and carry a financial card containing photo, 2008 Uganda’s ranking was 109. By name, unique number and biometric informa- 2013 it had improved to 48. tion when applying for loans or making an en- quiry. Nevertheless the project faces chal- Dr. Kalema headed the investors’ and manufacturers’ lenges. Budgetary constraints have lim- bodies at a critical stage of economic recovery Standardization of data was undertaken to en- ited the much needed public awareness able the participating institutions provide uni- campaigns to inform customers and the Dr William Kalema, who has served as Chairman of form and comparable information to the CRB for public about the benefits of credit refer- both the Uganda Investment Authority (UIA) and which a Data Standardization Manual was devel- ence bureaus. Delayed approval of the the Uganda Manufacturers Association, observes oped. Guidelines on credit data standardization proposed amendments to the Financial that the Private Sector was initially excluded. “It and the use of CRB services were put in place. Institutions Act of 2004 has precluded was a two-way dialogue – the Private Sector was not The key to accessing credit for potential Uganda Cooperative Bank, International Credit, a key requirement for matching data. The cen- expansion of the Bureau to other lend- part of the negotiations, but it eventually asked for borrowers is a financial card that ascertains Teefe Bank, Greenland, and Trust Bank were closed tral bank adopted a consultative approach with As at April 30, 2013, a total 844,377 financial ers, thereby denying CRB access to a place at the table. The World Bank agreed and so it credit-worthiness. Photos/David Sseppuuya at the turn of the century after they struggled with commercial banks, credit institutions and mi- cards had been issued to borrowers while 572 broader data and growth of the credit became a three-way arrangement when policies were credit management. crofinance institutions, as well as development branches of participating institutions were live market. designed.” partners. on the CRB and FCS systems. The institutions Parliament repealed the Financial Institutions Stat- are able to make an average of 45,000 credit en- Submission of inaccurate data to the The Private Sector’s influence has since grown. “In ute 1993 and replaced it with the Financial Institu- The Bank of Uganda (BOU) also developed the quiries per month on the CRB and to share infor- CRBs by institutions increases cus- 2012 more than 80% of the proposals the Private tions Act of 2004 with provisions aimed at, among framework under which the CRB would operate mation from a centralized platform through the tomer disputes and frustration among Sector Foundation (PSFU) put across were taken in others, the establishment of a Credit Reference Bu- and the parameters for information sharing to data standardization framework, which was not potential and existing borrowers. In ad- the budget speech framework paper,” says Gideon reau (CRB) to address deficiencies in the functioning enable the development of a strong reporting possible prior to the setting up of the Bureau. dition, the delayed commencement of Badagawa, PSFU’s chief executive. of the Financial Sector. system. This culminated into the formulation the National Identification Project has of the Financial Institutions Credit Reference Through the financial card, institutions are able constrained the central bank’s efforts in Kalema outlines the Bank’s influence at the UIA as The Act mandates the central bank or its appointed Bureau Regulations for licensing and operation to access borrowers’ credit profiles, thereby re- growing the credit market. Unique na- being: agents to establish a CRB to disseminate credit in- of the Credit Reference Bureau, which were ga- ducing information asymmetry between lenders tional identity cards would complement formation among financial institutions for their zetted in 2005. and borrowers, and are also able to validate iden- the financial cards used in the Financial • Support for the initial development of UIA business. Similarly, the Micro-Finance Deposit Act, tities of applicants, thereby reducing fraud. Sector, so as to ease the tracking of bor- of 2003 mandates Micro-Finance Deposit-taking In- External subsidy funding was sought from vari- rowers. Creditworthiness has indeed • Sponsoring materials for promotion stitutions to report non-performing loans or credits ous development partners, including the World Lenders are furthermore also able to identify returned credibility to the vital Finance to a credit reference bureau. Bank, KfW, and GTZ/Sida. The World Bank pro- clients who have excessive indebtedness, which Sector. • Supporting the development of Namanve vided 50% matching grant funding totaling $1 could result in loan default, enabling institu- Industrial Park Establishing the CRB was complex primarily due to million towards branch installation and training tions to advise borrowers to only take on loans the lack of a national identification system, which is of both the CRB and Financial Card System (FCS) they are able to service. • Underwriting the establishment of the Presi- dent’s Investors Roundtable 186 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 187 Capital Markets: Finance & Trade Less Emphasis on Banking, More on Capital Markets Two of the most critical institutions in Uganda’s financial markets are the Uganda Securities Exchange and the Capital Markets Au- thority, the latter being the regulator and the former where com- pany stocks and shares are traded. Uganda through the Second Private Sector Com- A number of studies were done on the develop- petitiveness Project (PSCP II). It was adminis- ment of the bond market and how it should be tered by the Bank of Uganda that housed the regulated. secretariat, and Private Sector Foundation of Uganda, which was the implementing agency of A framework for the issuance of regional bonds PSCP II. has been passed with ESMID’s support, and the regulations were about to be published. “If I The IFC’s Efficiency Securities Markets Institu- wanted to issue a bond in East Africa. It doesn’t (Above) A model of how capital markets tional Development (ESMID) targeted the fi- have to get separate approvals from the differ- integrate and benefit the economy. (Left) nancial markets. Another program called FAST ent regulators. If you say you are going to issue a Uganda Securities Exchange boss, Joseph Initiative looked at how Uganda’s financial in- bond and it is going to be issued in other jurisdic- Serwanga Kitamirike dustry benefited. Those programs are no longer tions, you make your application to the Uganda operational, but currently there is the World CMA, which then liaises with the other CMAs. Bank East African Community Financial Sector But for you, you are dealing with one regulator Development and Regularization Project that is instead of having to go to Rwanda, Tanzania, or administered from Arusha, Tanzania. It also tar- Kenya. It is consolidation,” says Katto. gets capital markets, pensions, banking, micro- finance, insurance. The World Bank has provided financial support for capacity building especially under FMDP, Under the FAST Initiative, Uganda developed which has included attending training sessions collective investment schemes, or unit trusts like the US Securities Exchange Commission legal regime which resulted in the enactment of program for international regulators. “I have the Collective Investments Schemes Act that is personally made presentations at the World a crucial part of the legal and regulatory devel- Bank pensions conference. It also helped us to opment, and has led to licensing of some fund benchmark with other regulators like Mauri- managers and collective investment schemes. tius on the Securities Central Depository,” says CMA’s Chief Executive Japheth Katto thinks too much emphasis has been placed on Katto. banking, at the expense of the Financial Sector’s other non-banking arms, creating an “Collective investment schemes are a very good imbalance. Photo/David Sseppuuya vehicle for small investors to access the capital To improve efficiency in clearing and settlement, markets by making small investments,” says Ja- the Uganda Securities Exchange, with support pheth Katto, the Chief Executive of CMA. from World Bank through its partnership with The Capital Markets Authority (CMA) regulates the Private Sector Foundation, embarked on an About the future, CMA’s Katto says: “From my per- capital markets industry - stock exchange, brokers, FAST Initiative was for consolidating regulation electronic Securities Central Depository (SCD) spective, there is still a lot that needs to be done to fund managers, investment advisors, and collective of the non-banking sector. “A couple of years development and implementation project. Af- convince policy makers and the World Bank that cap- investment schemes. It was established in 1996 and ago, during the time when we were talking about ter the enactment of the SCD Act in 2009, the ital markets are going to be critical for the growth of became operational in 1997. creating a regulator for the Pension Sector, we SCD project was completed in 2010. The major Uganda’s economy and the Financial Sector. When undertook a study to see whether it was feasible successes were identifying the service providers, they are allocating projects and resources more em- CMA regulates, develops and promotes the market to consolidate the regulation, in other words SCD promotion, public awareness and under- phasis needs to be put on the capital markets. There with the objective of promoting investors. It also op- bring the pensions to capital markets, then to standing, and ensuring adequate training of the needs to be a mind shift to one that will say that, erates the Investors’ Compensation Fund for inves- insurance, so that we have a regulator for non- system operators. ‘alright, the banking sector is very critical, but let us tors who may lose their money as a result of a broker banks. That study was done and has been very not over-focus on the banking sector (at the expense or dealer not fulfilling their obligations. instructive,” says Katto. A coutry-wide public awareness campaign, tar- of capital markets)’. There is a need to provide diver- geting current and potential investors on the sification in the sources of funding, so more effort Capital Markets and the World Bank have a relation- Under ESMID, consultants were engaged to de- Securities Exchange culminated in several inves- needs to be put in the capital markets as an alterna- ship. The Financial Markets Development Plan was velop a road map for regional integration of the tors opening accounts and depositing securities tive source of finance like through bond issuances, funded by the World Bank and the Government of capital markets in the East African Community. in the system. shares and so forth.” 188 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 189 Land Management: Finance & Trade Digitalized Land Management Promises Speed and Order II), costing $70.0 million, undertook to reform will be the review of laws that are not in harmo- the delivery of land services through improv- ny with the legal framework,” says Richard Oput ing land administration; systematic registra- of the Directorate of Land Management. tion of communal and individually owned land; strengthening institutions and mechanisms for The need for reform is evident in Fort Portal, Good news: You can now get your land title processed in a few days. land dispute resolution; and strengthening land where the Land Office was still huddled in the administration and management institutions. District Administration building before shift- And you do not have to come to Kampala to get it. Ugandans’ attach- ing to new autonomous World Bank-sponsored ment to land is second to nothing else. Society revolves around land; The project has captured data from around premises on 1.5 acres of land. In the old prem- cultural attachment is on land; and land as a factor of production is the country, done digital mapping, digitalized ises, a Victorian-looking safe, manufactured in manual data of all land titles at the Ministry England by Samuel Withers & Co Ltd, squatted taking on an increasingly greater economic profile. of Lands, and updated the Government’s Land in solid resistance in the corner of an official’s (Left to right) Manual cartography skills like Fort Portal office’s chief cartographer, David Tinkasi- Land is crucial in economic development, in ag- mire’s, will be phased out with digitalization. The strongroom at the Kampala Zonal Office still holds riculture, industry, roads, and as collateral for thousands of paper files. Folder and spring files, paper, stamps, pads, and boxes still clatter a land of- loans. ficial’s desk in Kabarole. Filling out land titles by manual typewriter will also come to an end. Photos/ Laura Walusimbi For many years, Uganda had just one Land Of- fice, located in the capital city Kampala. Dis- putes, transactions, transfers, and registry were Inventory. All leasehold and freehold titles have office. Trade-marked ‘Without Which None Are mostly centralized, much to the inconvenience been transferred from Kampala to zonal offices. Genuine’, the 10-ton safe is the perfect picture of most citizens and businesses. Now there are Kampala’s ‘mailo’ land registry, which was by far of long-held practices in land management; flap- fully-fledged offices around the country that are the busiest and would take clients even months ping in front of it are ancient maps of the mid- able to conclude all land-related issues. to conclude searches, has been so reformed that Western Uganda region, tearing and yellow with processes are now down to four days or less. age, but still perilously holding precious infor- To improve the business environment, the Pri- mation. vate Sector Competitiveness Project II (PSCP “Part of the land management reform process CONT. ON PAGE 192 190 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 191 Land Management: Finance & Trade Out With the Old, in With the New to Unlock Uganda’s Land Potential CONT. FROM PAGE 191 refurbishing and digitalizing, the office could There are now Land Offices in: Furthermore, there are plans to establish offices only process 100 transactions a day, manually. in Kabale, Rukungiri, Luweero, Mpigi, Mityana, But now with all land titles being online, the ca- Moroto. A Land Information Centre, linking In the room across, cartographer David Tinkasimire pacity has increased many-fold. all, has been established in Kampala to act as a still gets value out of those maps on the wall but he, • Kampala (City Hall) nerve center, which promises to bring to an end like others, are being trained in new digital methods. PSCP II’s second component is business regis- • Wakiso age-old land management strongholds, and spur At the Kampala Zonal Office, another set of profes- tration and business licensing reforms to re- • Masaka economic and social growth. All the potential sionals in the Survey & Cartography Department duce the burden in dealing with registration • Mbarara that Uganda’s abundant land holds should be pores over maps and documents, supervising and and licensing procedures through creating an • Fort Portal unlocked. checking work to see that it conforms to the prin- online one-stop-shop for registration and an • Kibaale ciples of surveying before it is logged into the Land e-registry for business licensing, and by imple- • Masindi Information System. This group is always consulted menting measures to streamline registration • Arua before land titles are made. and licensing procedures. Tourism competi- • Gulu tiveness development is the third component, • Lira The two floors, on City Hall, where the Zonal Office to strengthen Public and Private Sector stake- • Mbale sits, were refurbished by the World Bank. Before the holders for a competitive tourism industry. • Jinja (Left to right) Out with the Old and in with the New: The new Zonal Land Office for Kabarole in Fort Portal is spacious and airy. A 50 year-old statutes book in the old district administra- tion office in Fort Portal typifies the outgoing manual approach to land management. The new global positioning software, used for mapping, is already under use at the Kampala office. The machine that embosses land titles with seals is heading to obsolescence. Photos/Laura Walusimbi 192 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 193 Feature 1: Finance & Trade Enterprise Garden-to-Export Dried Fruit The process of converting fresh fruit to dry, preserved and packaged produce at Flona’s factory is a highly hygienic operation that also requires deft hand skills from the small workforce. Photos/Laura Flona in Numbers: Firm Recovers From 9/11 Walusimbi • $58,000 loan Uganda Development Scheme (BUDS), will take routes and transfers were not as efficient, and • $90,500 BUDS grant for dryer, the business to a higher level. “We need a stain- the exporter lost clients. export brands, investment less steel drier of a 300kg capacity. We sourced plan, Germany exhibition Not far from the banks of the River Nile, a worker takes a set of two, at $28,000 and $35,000 respectively. Now When Brussels Airlines took to the air in 2003, pineapples and gives them a thorough scrubbing. But even before we need financing, as well as for pulping equip- Flona was able to resume, and got a client in Bel- • 80% exports to Kenya (300- ment, at $250,000.” gium and eventually in Japan. Today, the main 400kg per 40 days) the process begins, the worker himself must have a thorough scrub- export market is Kenya, where the Japanese cli- bing of his body in the shower that is a compulsory starting point for This would be upgrading from current machin- ent set up stall to consume 80% of Flona’s pro- • 20% exports to Austria and Ger- many all. ery. In 2006/7, Flona had invested 43,000 euros duce, 300kg to 350kg of dried fruit every month ($58,000, shs163 million), of which 23% was a and a half. • 70% of inputs from out-grower grant from the Private Sector Foundation (PSF), farmers The pineapples of Bugerere in central eastern Ugan- and much of it is grown in the fertile crescent with the rest as a loan from the Uganda Devel- The agro-processor has participated in the Ger- da are particularly tasty, courtesy of the rich soils of around Lake Victoria. opment Bank (UDB). It was invested chiefly in many BioFach Fair, the big annual organic trade • 30% of inputs grown by company the valley at the confluence of the river and Lake Vic- a drier. fair in Nuremberg. Isiko says that at one exhi- toria where the Nile begins its 6,650km journey to Seventy percent of the produce is supplied by bition a potential client approached him for 10 • $28,000 or $35,000 needed for the Mediterranean Sea. out-growers, while Flona Commodities grows Flona started in 1998 as a fresh fruit exporter, shipping containers of produce per month. He new drier the rest on its 8.5 acres. The operations in the with Switzerland as the main market. This was had to decline because Flona currently does not • $250,000 needed for pulping Alongside pineapple, the main produce, Flona Com- processing house are still basic – washing, slic- to fall foul of the 9/11 (the September 11, 2001 have the capacity to produce so much. Flona is equipment modities dries and packs large bananas (‘bogoya’), ing room, pulping, drying, and packaging. terrorist attacks in the US) which undercut the still paying the UDB loan. Isiko however laments jack fruit (‘ffene’), small sweet bananas (‘ndiizi’), global airline industry, leading to the folding of the high interest rates (between 19 and 23%), • 8 person workforce: managers, gooseberries (‘ntuntunu’), mango, pumpkin, toma- Frederick Isiko, the Managing Director, is hope- Sabena, the carrier that used to ship Flona’s pro- saying, “Ugandan banking is not agro-friendly.” quality controllers, field offi- toes, mondia white root powder, and ‘safari mix’ ful that further investment, alongside a Private duce from Uganda to Europe. Flona tried alter- cers, inspectors, processing as- (a compound of different fruit). All fruit is organic, Sector Foundation grant through the Business native carriers out of Entebbe Airport, but the sistants 194 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 195 Feature 2: Finance & Trade Enterprise Beauty and the Kitchen, Sameg is producing a range of household products, including liquid soaps and detergents, shampoos, cleaners, and bleaches. They are becoming more competitive on Ugandan and regional supermarket shelves. Photos/David Sseppuuya, Laura Walusimbi Sameg has Provided them all Shopping for beauty products or household cleaning materials in a Ugandan uct in 1998, for which BUDS reimbursed $2,600 and the management systems –designing and devel- supermarket today will inevitably bring one face-to-face with Jireh products. (50%); Financial Management Systems - design oping new products and training in November 2000. and installation in February 1999, where BUDS For this one, BUDS reimbursed $ 4,700 (50%). reimbursed Sameg $1,840 (50%); and Interna- tional Marketing & Sales Promotion-targeting Sameg has grown from obscurity to become one of Jireh Bleach, Jireh Liquid Detergent, Egg Shampoo, consolidated the manufacturing of detergents, exports to Tanzania in June 1999, in which the the leading local producers of liquid detergents. It Pearlised Shampoo, Herbal Shampoo and Petroleum shampoos, bleaches and cosmetics with much Scheme reimbursed $1,850 (50%). has won several awards: it has been recognized by Jelly are a few that have taken firm space on shelves, success on the domestic market. the Uganda Manufacturer’s Association for its qual- and found their way into homes. Sameg’s other three BUDS-funded initiatives ity products. Between 1998 and 2001, Sameg completed six were the launching of a new product at the Jireh is the product name of the output from Sameg activities with the assistance of the Business Uganda International Trade Fair ‘99 – Lugogo in Chemical Products in Kampala. Sameg is a sole pro- Uganda Development Scheme (BUDS). The October 1999, in which the reimbursement was prietorship that started operations in 1990, fulfilling scheme provided a total of $14,000 as cost- $ 1,710 (50%); a Domestic Marketing & Sales the vision of Sam and Margaret Rugambwa. sharing grants. The activities that BUDS part- Promotion in the launching of Mbarara branch funded include Domestic Marketing and Sales and introduction of new product in April 2000, Over the years, Sameg has initiated, nurtured and Promotion-exhibition and launch of new prod- for which Sameg was reimbursed $1,350 (50%); 196 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 197 Feature 3: Finance & Trade Enterprise Mutuma’s Value Addition Chain (Left to right) Mutuma Commercial Agencies’ ginnery, where cotton seed is processed in the mill to produce cooking oil and animal feed. The new machinery that produces high-quality cotton wool. (Be- low) The new factory where the latest machinery is installed. Photos/Laura Walusimbi Lie down on the treatment table in a mainstream hospital in Uganda today and there is a big likelihood that the roll from which the nurse will pluck a loan, though the company still hopes to take further wad of cotton will be labeled ‘Pearl Fine Cotton Wool’. credit from the Uganda Development Bank to enable it increase production as it targets the East African market. Pearl is a highly absorbent surgical cotton that has Taking over the premises of the defunct Busoga steadily captured the market in Uganda’s pharmacies Cooperative Union in 2005, Mutuma added to The cotton wool department started in 2010, while and treatment rooms, and is looking to soon absorb the old machinery like the ginnery and the oil the ginning and pressing on the Luuka premises be- a bigger market in the East Africa region. press, new equipment including an automatic gan in 2005. Today Mutuma produces 4,000 rolls of plucker for spinning and drying. It threw in an 500 gram wool per day, but the medium term target Mutuma Commercial Enterprises’ operation, tucked assorted range of the most affordable new tech- is 10,000 rolls, which would also be focused on the away in the rural recesses of Luuka District in East- nologies to bring out finished products from the regional market. Break-even for the company has ern Uganda, is a classic case of a value addition chain: old ginning routine. been set at 6,000 rolls per day. It assists farmers with knowledge on pest control and inputs like fertilizer; it takes cotton lint from the “We got a grant of $100,000 from the (World It all begins with the farmer. Mutuma, which em- farmers; it gins cotton; it spins yarn; it picks up by- Bank-supported) Private Sector Foundation”, ploys 243 people in the high season after harvest, products like cotton seed cooking oil, soap, animal says Amos Mugisha, the Managing Director, in works with 2,800 farmers in the surrounding dis- feeds, fuel, fertilizer; it uses the best technology to reference to the $600,000 in capital that went make the wool; it sells to the local market; it exports. into the new equipment. Most of the rest is a CONT. ON PAGE 200 198 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 199 Feature 3: Finance & Trade Enterprise Mutuma in Numbers • 2,800 cotton farmers Mutuma’s Value Addition Chain • 700kg – 1,000kg per acre • Shs1,200 (US cents 50) farmgate price per kg of cotton in 2012 season • Shs1,500 (US cents 60) in 2011 season CONT. FROM PAGE 199 • Shs3,000 (US cents 120) in 2009 season “This cotton wool is of good quality; better than tricts. Outreach programs teach the farmers how to what the Ministry of Health imports,” says Mu- • 243 employees in high season increase yield on limited acreage through applying gisha. good agronomic practices like pesticide control. Mu- • 4,000 rolls of 500 grams surgical wool tuma supplies fertilizer. Lamenting the high interest rates, which make production per day borrowing too expensive, and the erratic power A lot of the produce that does not go into the Cotton supplies, whose tariffs anyway keep increasing, • 6,000 rolls per day to break even Wool Department to make surgical wool is actually Mugisha believes that the company can do bet- (Left to right) Pressing cotton lint to produce the sheets that are eventually turned • 10,000 rolls target for regional market exported as lint. Mutuma has been able to export ter if these were addressed. He also laments a into high-quality wool to supply the domestic market. Photos/Laura Walusimbi 4,000 to 5,000 bales of lint yearly to Singapore and dearth of skilled manpower for specialist roles. • 4,000 to 5,000 bales of lint export to the United Kingdom. Mutuma has to go to Kenya to source trainers, Singapore and UK per annum and then do a lot of training on the job. Mutuma works with the Uganda Industrial Research • Shs35,000 ($14) sale price of 50kg cot- Institute in Kampala to get technical information on Backward linkages could possibly involve a part- ton seek cake packaging. The surgical cotton wool has been tested nership with Busitema University, which is run- and certified by the Uganda Bureau of Standards, ning a Textile Engineering course, and is set to • $600,000 investment in machinery and while its main client is the National Medical Stores. send out its first graduates. infrastructure • $100,000 grant from Private Sector Foundation’s Business Uganda Devel- opment Scheme for machinery 200 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 201 Feature 4: Finance & Trade Enterprise Star Cafe has stepped into a big breach, taking a commodity that has been a backbone of the Ugandan economy even in its raw form, and turning it into an award-winning final product. Star’s range of cof- Coffee, the World’s Favorite Drink fees is widening, to bring wider appeal on the international market. Photos/Laura Walusimbi “Coffee - the favorite drink of the civilized world,” is what Thomas Jefferson, of Kampala Domestic Stores. Shareholders of which was distributed through numerous en- a founding father of the United States of America, called it. Justina Chen, a Kampala Domestic Store decided to add value to deavors: brand study ($10,720), brand plates the green coffee through roasting, blending and ($8,850), and point of sale/website ($65,570). fiction writer, qualified it even better, saying “Adventure in life is good; con- packaging Ugandan coffee, and Star Café was in- You can now smell the coffee at the plant in sistency in coffee even better.” corporated to undertake the venture. Kampala’s industrial belt. The processes empha- size food safety. They are realigning the product For decades Uganda has been one of the world’s lead- adding value to our products, and Star Coffee In 2011 Star, working with the World Bank- to be of international standards by ensuring that ing producers of coffee and at one point, the coun- has answered that call. backed Private Sector Foundation (PSFU), be- there is no contamination. try’s economy relied almost exclusively on the cof- gan implementing a new project to transform fee bean. Therein was the problem – the coffee bean. Star Café Ltd is a limited liability company in- the company to prepare it for the export mar- Star has already won a number of awards, and Uganda continually exported beans, extracting only corporated in November 2000, after the 1990s ket, especially with new brands. From PSFU’s has broken through to the overseas markets, ex- the minimum it could get – raw beans. In the last de- coffee crisis that led to extremely low prices for Business Uganda Development Scheme (BUDS), porting instant coffee to DR Congo, Sudan, Libe- cade and a half there has been a rallying cry about green coffee, which was then the core business Star got matching grants totaling $85,140, ria and China. 202 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 203 Feature 5: Finance & Trade Enterprise Planting Seeds for Agro-Economic Growth (Left to right) Seed is sealed in tins at Victoria’s Kampala factory. In Masindi, maize seeds that have been protected from weevils are bagged for onward shipment to farmers, wholesale and retail outlets. Victoria Seeds in Numbers The shop in Masindi stocks seed varieties, herbicide and pesticide. Photos/Laura Walusimbi • 4 sites: Kampala Industrial Area, Na- A few hundred meters after the outskirts of the Murchison Falls Na- been planned, though equipment is yet to be oped two hybrids of maize: Victoria F1 and Vic- manve Industrial Park, Masindi, Gulu purchased. toria F2, whose disease resistance is higher than tional Park in North-Western Uganda, the jungle suddenly gives way normal Ugandan types, is drought-tolerant, and • $2 million factory at Namanve to a big factory and the traveler experiences a complete switchover The reason the new site is idle, in spite of com- has a higher yield. pleted buildings and a full range of equipment, is from the wild to a peri-urban working environment. that there is no power, nor a passable road to the “Victoria Seeds agronomists help farmers with • $5,332 matching grant under PSFU’s Business Uganda Development Scheme Kampala-Jinja highway, which is just 1 km away. training, and do frequently visit the fields be- (BUDS) tween planting and harvest,” Dube says. Victo- The factory, a red brown set of high-walled build- ria Seeds has two other outfits, a spanking new Founder and Managing Director, Josephine ria provides its 100 contracted farmers in Ma- • 100 maize farmers contracted per sea- ings on the northern approaches of Masindi town, factory in the Namanve Industrial Park on the Okot, thinks that a lot can be better. “We are an sindi with transport and packaging material; son in Masindi is home to Victoria Seeds Limited’s processing plant, eastern edges of the city, and a packing yard in agro-economy that wants to industrialize, so we the farmers only harvest, shell and store. Peak • 800 tons of maize per season in Masindi and site of a large operation handling especially the old Industrial Area. To the far north, it also have to install the requisite infrastructure,” she season yields about 800 tons of maize. maize seed, and selling a variety of agrochemicals has a site in Gulu. says, pointing to the multimillion shilling invest- • 900 farmers contracted in Gomba, Ma- and seed. It is late April, which is the early weeks of ment, which received financing from Europe at Victoria also does its marketing in outlets coun- sindi, Gulu, Kasese, Mbale the year’s first season, and workers pack red-tainted The contrast between the two Kampala sites interest rates far friendlier than Uganda’s. “We trywide, while also distributing to agro-dealers pest-protected maize seed in sisal bags ready to dis- could not have been starker. The old site is in need a public road to a place like this?” and stockists. Victoria is the country’s dominant • 6,000 – 8,000 tons processing capacity at tribute to farmers in due season. cramped premises where vehicles and women player in seed distribution. Namanve and Masindi packing seed are competing for space even as Victoria Seeds started in 2004, setting up a vege- Harvest will be in June and July, and there is a keen- rains threaten to fall and potentially ruin the table processing unit. It trains farmers, process- Victoria’s business model, which includes devel- • 20,000 tins of ‘sukuma wiiki’ (collard ness to keep the seed dry, before contracting 100 seed. Across town in Namanve, the new $2mil- es seed, and liaises with research organizations oping farmers, research, processing, packaging, greens) vegetable seeds wanted by NPK farmers in the Masindi neighborhood to grow the lion factory lies idle. Inside its vast spaces are to develop the seed industry. In Masindi, Nda- and distribution, has received support from the Norway per week next crop. unopened crates of pre-cleaners, seed graders, bezinhle Dube, the operations manager, says the World Bank-backed Private Sector Foundation’ s and gravity separators. The cold room is a cav- company, working with the National Agriculture BUDS program. BUDS helped Victoria set up ac- Hundreds of miles to the south in Kampala, Victo- ernous empty space, while the laboratory has Research Organisation at Kawanda, has devel- counting systems for collecting data. 204 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 205 Deputy Governor: Insider’s View IN SIGHT EIGHT Louis Private Sector Credit: Construction, Trade and Personal Loans Absorb 60% Kasekende of Credit. Borrowers Increasingly Prefer US Dollars to Uganda Shillings Financial Sector Overcame Resistance to Reforms Dr. Louis Kasekende is the Deputy Governor of the Bank of Uganda. Between 2002 and Source: BOU and World Bank 2004 he sat on the World Bank Group’s Executive Board as Ex- ecutive Director representing 22 African countries. He has drain on the Budget; we had huge non-perform- of that meltdown in the West. environment permits, from project financing to ing assets; and there was a lot of financial inter- budget support. also served as Chief Economist mediation. The Development Partners’ past errors were es- at the African Development pecially conspicuous back in the 1990s. There Thirdly, we should align financing, any financ- Bank. Since 2000, there has been some support to the were many stand-alone projects financed by the ing, to the Government’s development programs Private Sector from the banking system; in fact World Bank, and most of them would not be in- in order to get greater commitment. It is a learn- From 1990 to about 2000, the Financial Sector outreach has increased. We see products being tegrated in the broader national development ing process that has evolved over the last 27 reforms were resisted a lot in Uganda. There was introduced by the system, not supported in any picture. They would be outside of Government’s years. At the moment (2013/14 fiscal year) the a fear that reforming the sector would result in way by Government. Mobile banking has come budget and as a result they would be heavily de- National Budget is financed up to 80% by local indigenous Africans not having access to finan- and it has increased the outreach of the financial pendent on the financial support of the World resources. cial services. The apprehension was that locals system. Bank, which would raise the issue of sustainabil- would only get access to services if there were ity. For Uganda to stop taking development aid institutions which were run and owned by Ugan- Now there are loans coming from microfinance and budget support, the strategy has to evolve dans; that any participation of foreign banks in institutions; we see ATMs (automated teller There was also the challenge of well-implement- around exploitation of oil, which would avail a the Financial Sector would mean that people machines for retail personal banking); there ed, effective programs whose ownership on the huge resource to the Government. Dependence would be mobilizing Ugandan resources and ex- is appreciation of the rule of technology in the ground was limited. But give credit to the Gov- on donor financing will reduce, though that is ternalizing them. Financial Sector. All these are investments by ernment and to the World Bank, and credit to all the narrow way of looking at a development rela- a very efficient, well-regulated banking system. the donors. They have learnt a lot and addressed tionship. You do not only get the financing from But look at what we have achieved through re- The global financial crash in 2008 came, but we this. Ownership matters a lot because we need form. We no longer have state banks that are a see that Uganda was insulated from the effects to ensure that there is a transition, where the CONT. ON PAGE 208 Photo/Bank of Uganda 206 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 207 Deputy Governor: Insider’s View Financial Sector Overcame Resistance to Reforms A Shift from Domestic to External Borrowing tiative, in which Uganda benefitted with debt There was also a time when emphasis was on the forgiveness, was one intervention which gave Social Sector. But the Bank recognized that just very big relief to the budget. Without HIPC and putting a lot of money in the Social Sector would the Multilateral Debt Relief, we had these huge not provide us with sustainable growth and de- debt servicing costs, which were a very big drain velopment, and they then shifted to financing on our budget resources and meager foreign ex- infrastructure. change resources. Uganda also had a challenge to break into Private Sector financing because of There was a time when financing of dams was the very big arrears. taboo, but the Bank learnt from that and said, ‘Okay, if we do the following, you can get back to HIPC helped us on reducing the debt servicing financing of infrastructure and dams because at costs; it reduced the burden on the budget; it the end of the day it is supporting the develop- eased foreign exchange resources; and also im- ment of these countries. Find what works best proved Uganda’s credit rating. and if you have made a mistake, you learn from that.’ There is no danger of slipping back into heavy in- debtedness as the management of this economy That is credit to the World Bank. has improved a lot. There are different indicators that are monitored, we now have a three-year budget program and we have everything with us. It begins with the development plan, then on to Source: Ministry of Finance, Planning and Economic Development, and World Bank the budget, and I think we should give credit to those that have helped us to build the necessary capacity to manage this economy and, so, chanc- es of heavy indebtedness are minimal. Uganda is now a post-HIPC country. CONT. FROM PAGE 207 those other islands that require financing from Over the 50 years the World Bank has been a Development Partners and knowledge for devel- listening bank; and in that mode, development especially institutions like the World Bank, which opment. financing has evolved a lot. It is to their credit also advise on policy as well as share knowledge. that now, in many countries, governments have So the relationship between Uganda and the been put in the driving seat and empowered to The World Bank Group operates in almost 170 coun- Bank is here for some time. lead in identification of their priorities. That’s tries, so nations like Uganda get knowledge and ex- number one. perience from the others. For instance, oil: We would The other point is that while the World Bank learn how best to exploit that resource for the benefit is a provider of resources to Government, it is Secondly, the World Bank has taken on every of this country, how best to exploit that resource in a also a source of financing to the Private Sector. lead role in the relationship between all donors sustainable manner. The World Bank is more than a As the Private Sector expands, especially during and governments in convincing donors to har- source of financing; it is also a source of knowledge. this period in the 2010s, they will be looking to monize and align to Government priorities. For the World Bank as a source of medium and long example, financing where all donors align their Development partners share knowledge and at times term financing. funding to the national development programs that is a bigger resource to the country. The World of countries, as opposed to picking on projects Bank will provide you with technical assistance, and Uganda will also need to finance its infrastruc- and placing flags. That has been very important also share with you research reserves from their own ture projects to support the exploitation of oil. - putting a lot of emphasis on capacity building. research work. There is this whole new area of public private partnerships; we need a lot of knowledge on how In addition, getting the resources to finance the to structure it. So, I see relationships that would budget is one thing, but Uganda could also still have go into many years. Centenary Bank, which is headquartered in the pockets that would remain or require interventions sky-scraping Mapeera House, is a Banking Sector by donors. Pockets of poverty, for instance, and The Highly Indebted Poor Countries (HIPC) ini- achievement 208 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 209 PRIVATIZATION & DIVESTITURE Privatization and Divestiture SE CTIO N NINE At a time when it was just a byword in most parts of the world, Uganda embraced privatization as a key strategy for the revamping of an economy that was largely in Government hands and grossly underperforming. Taking up the Thatcherite model, the state divested itself of interest in manag- ing economic enterprises, and concentrated on policy and regulation. Ten methods of divestiture have been used: Sale of Assets, Share Sale, Joint Venture, Pre-Emptive Rights, Initial Public Offering (IPO), Concession, Auc- tion, Management Buyout (MBO), Debt-Equity Swap, and Repossession 210 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 211 New Policy: Divestiture Subsidized Public Enterprises Give Way to Private Sector Dynamism The reforms were to redefine the role of the state in the economy, reduce the fi- 3.8% of external debt obligations servic- es during the 1980s, in addition to accu- nancial and administrative burden of the mulating internal and external arrears. The Government of Uganda started Public Enterprise (PE) Sector PE Sector on Government, improve PE ef- The Public Enterprise Reform and Dives- ficiency, and encourage investment. At titure (PERD) statute was passed in 1993 reform and privatization in 1992 when there were over 150 para- that point, PEs were receiving direct and to allow for reducing the state’s share statals (Government enterprises) spread out in virtually all sectors indirect subsidies at a cost of an estimat- in economic activity and improving the of the economy, employing more than 30,000 people, accounting ed 50% of total Government revenues in efficiency of the remaining enterprises. 1992-93. PEs accounted for about 17.8% for 25% of total formal employment, and generating about 10% of of total credit to the economy in 1992 and CONT. ON PAGE 214 Gross Domestic Product (GDP). 212 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 213 New Policy: Divestiture After Liberalization of Markets, Productivity Diversified Away from Traditional Produce Subsidized Public 100% 90% Enterprises Give Way to 80% 70% Private Sector Dynamism 60% 50% 40% 30% 20% 10% CONT. FROM PAGE 213 taken to restructure each sector separately, lack of clarity on the institutional responsibility to 0% The World Bank’s Enterprise Development Proj- lead the process, and weak capacity to design 1993/94 1995/96 1997/98 1999/00 2001/2 2003/4 ect of 1993-2000 supported the implementa- and manage the reforms. Cofee Cotton Tea Tobacco Fish Hides & skins Simsim Maize Beans Flowers Others tion of the privatization program. By the end of 1999, some 93 divestures had been completed, The main beneficiaries of the privatization drive Source: Uganda Bureau of Statistics of which 62 had been privatized and the 31 liq- were the Private Sector, where the business uidated. By June 30, 2011, progress had reached community (in particular, mining, tourism, con- a total of 134 divestiture transactions, of which struction, and retail) enjoyed business opportu- 39 were liquidations or strike-offs. There had nities and benefits from better quality of utility been a hiccup when, in early 1999, responding services and reduced costs of factors of produc- eral years. Access to electricity, telecommunica- • Helping to improve the business and in- to the lack of transparency and allegations of tion, leading to increased competitiveness of the tions and water has also improved dramatically vestment environment by decreasing policy corruption, Parliament suspended the program economy. over the past 15 years. constraints and began an investigation by the Parliamentary Select Committee on Privatization. The other major beneficiary was the local popu- To complement the privatization drive, the • Strengthening institutions which provide lation. As end users of the utility services, the World Bank-financed Private Sector Competi- services to the Private Sector (Below) The width and breadth of Kakira Sugar The PERD statute was amended in 2000 to clarify local population has benefitted significantly tiveness Project (PSCP) was designed to make Works’ plantation in Jinja, Eastern Uganda, a the roles and responsibilities of the various bod- through increased quantity, quality, and acces- the Ugandan Private Sector more competitive so • Enhancing the dialogue between the private venture that was run down in Government hands, ies and establish clear procedures, signalling the sibility of infrastructure services. Between 2001 that it would expand sales to both domestic and sector and government before it returned to private enterprise through commitment of the Government to transparent and 2006 the Uganda Investment Authority re- international markets. PSCP took up these: pre-emptive right in July 2000. Photo/www.ka- and high quality privatization transactions. ported that the privatization program had been • Alleviating problems associated with inad- kirasugar.com (Previous page) Uganda Cement key to attracting foreign direct investment - the equate know-how and the then weak Finan- Industries, Tororo, was privatized through a Sale Reforms in the Utilities Sector in the 1990s had largest FDI projects involved privatizations. FDI cial Sector. of Assets in 1995. Photo/www.tororocement.com been slow due to the piecemeal sectoralapproach has been seeing an upward trend in the last sev- 214 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 215 Policy Shift: Divestiture How the Government Got Out of Business cause of population growth rates and other fac- tors. (Left) Deregulating the Telecommunications Sec- tor precipitated the mobile phone revolution, with exponential growth in the numbers of hand- The Bank supported the Privatisation Unit with sets. (Above) The Privatisation Unit’s David Sse- David Ssebabi is the Director of the Privatisation Unit in the monetary interventions through the IDA credits babi. Photos/David Sseppuuya Ministry of Finance, Planning and Economic Development. The up to 2005/2006 when direct funding stopped. Unit was created as a result of the Parastatal Enterprise Re- Privatization would not have taken off as quick- form and Divestiture Statute (PERDS) Act. Ssebabi has overseen ly, independent of the creation of PERDS and privatization and divestiture over the years, and he shares: World Bank intervention, as it did because in the late 1980s, when the World Bank came in, the Government was financially constrained. The PERDS Act came in 1993 and provided the law Bank and other institutions were pushing priva- to allow the Private Sector to take over the pub- for which the enterprise development project was tization, Government recognized that the best lic enterprises. Most of the sale and marketing of enterprises operating. The Government wanted to create an entity to provide certain services was the Private was done by the Government, with the assis- agency that would implement divesture or privatiza- Sector. Initially the Bank helped to focus Government tance of advisors from the World Bank. The ac- tion in a formal, liberal way, supported by law. resources on social welfare and other infrastruc- tual implementation was owned by the Govern- The World Bank’s role is to promote economic ture investments to enable take off, and that is ment, and by law there was a framework under The state of public enterprises in the 1980s was in a development. So the World Bank did recognize where most transformation happened in Ugan- which the marketing and sale happened. very sorry state - goods and services from these en- that if they did not deal with the resources, da in the 1990s. The liberalization and the Pri- terprises were non-existent. Most were in a state of which Government was committing to business- vate Sector-led growth model was implemented, The Privatisation Unit is still relevant, but the insolvency; the solution then was committing a huge es that were not adding any value, if they did not which led to increasing economic growth. process of divestiture or privatization is what is proportion of public funds to supporting them. support Government to ensure that resources coming to an end. There are still a few parastat- were focused on economic development, then Today subsidies to commercial-like ventures als and public owned companies. However, the Clearly Government was not the best to provide cer- services to the citizenry would not improve. have reduced tremendously so most of the pub- role of the Private Sector in getting into partner- tain goods and services that could be provided by the lic and World Bank resources are now focused on ship with the Government to deliver services is Private Sector. The nature of Government was such The World Bank’s role was more to support the hospitals, schools, and roads. Of course given not about to come to an end. that they didn’t have the capacity for certain risks in Government to achieve social welfare and eco- the rate of economic growth and development, delivering these services. And as much as the World nomic development than to force Government it might be difficult for us to feel that impact be- CONT. ON PAGE 218 216 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 217 Policy Shift: Divestiture How the Government Got Out of Business vices, and they have managed them like the Pri- where the World Bank has been useful; the Bank The New Vision Printing and Publishing Co. Ltd was partially priva- CONT. FROM PAGE 217 vate Sector. has a global outlook. tized with an IPO offer of 20% of its value in September 2004. Ubiqui- tous transmission masts (right, in Pakwach) are signs of the privatiza- Some critics think that divestiture was rushed, and A good example is Emirates Airlines. Many say But the state should not necessarily get out of all tion-driven telecommunications revolution. Photos/David Sseppuuya advocate, like in other countries, for ownership and that Emirates is the best airways in the world sectors - for provision of certain goods and ser- control to be returned to Government; but there is but it is state-owned; from the way it was cre- vices, the public private partnership (PPP) mod- mixed empirical evidence. There are some countries ated, it was created to act like the Private Sector. el is applicable. Roads, for instance, are more of A good example is Emirates Airlines. Many where Government has the skills and capacity within So that is important. The principle is how you public goods; a backbone of economic infrastruc- say that Emirates is the best airways in the themselves to deliver certain services. But it is also get the Government to operate like the Private ture, but also the access of the road is such that true that there are countries where certain services Sector would. all citizens should be able to access a given road. world but it is state-owned; from the way are being handed over to the Private Sector. Even sectors like hospitals, education, and air- it was started, it was created to act like the The New Vision here in Uganda is a bit simi- ports. For economic infrastructure per se, Gov- Similarly it is true that there are countries that have lar though the major difference is that it is not ernment plays an important role. That drives the Private Sector. not had that history of believing in Government wholly Government-owned, but the majority of shift to PPPs. doing business. Now for the latter, (the ones which its ownership is. It is possible that entities can result - the telecommunications sector has been have not got that capacity), the model of relying on walk and talk like the Private Sector, but they The PPP arrangement allows both Government transformed. the Private Sector to deliver certain services is the have to be disciplined. That is why many gov- prioritization and regulation, as well as Private best. ernments are looking at the option of having Sector involvement. However, that does not ruleUganda has privatized about 90% of public enter- partnerships rather than selling off entirely to out the fact that there are some sectors, whichprises. Now Uganda needs the support of the World For others that have got a rich history of perfecting the Private Sector; so there are various models Bank to harness the benefits of PPPs. The nature of call for having to devolve to the Private Sector, this, public enterprises behave and work like the Pri- but it always comes back to the fact that you leaving the Government to regulate. entering into PPPs, the technical know-how of en- vate Sector, founded on the principles and autonomy have to walk and talk like the Private Sector. The tering these complex partnerships is like a long-term given to them. There is no question about it, that you framework has got to be such that the incentives The Telecommunication Sector is one where the marriage. PPPs are programmed to last 30-40 years have examples around the world where the state is for the Private Sector to be able to operate the Government should not be heavily involved, and the World Bank is basically to put in place infra- still involved in delivering these infrastructural ser- way they do are offered by Government. That is save for regulation. In Uganda you can see the structure, which in most cases is not yet there. 218 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 219 Enterprise: Divestiture Ugandan Rice Back on the Dinner Table erates a technologically advanced packaging fac- tory. Tilda Uganda’s products are distributed on the local market and are also exported. It is an enormous investment. Out in the fields, four combine harvesters (with plans to buy two more at a cost of $250,000 each) harvest rice (Left) Rice is prepared in different dishes by the diverse Ugandan com- munity and in public eating places. plants at amazing speed. Uganda’s first hydro til- (Above) Tilda’s produce is dominant That steaming bowl of rice at the Ugandan dinner table is more like- After the Chinese-designed Kibimba Rice ler tills a hectare of land a day - this technology on supermarket shelves around the ly to have been grown in the country than abroad. Although Uganda Scheme collapsed under the mismanagement would be very suitable for a Ugandan farmer who country. Photos/Laura Walusimbi imports rice, local production has improved many-fold in the last that many other public enterprises suffered in works in swampy soil. Back at headquarters, two the 1970s and 1980, Uganda had to import a lot technicians in the Quality Control Laboratory few years principally because the producers have increased and the of rice for many years. huddle over microscopes, mini cleaners, huskers dominant player has stepped up operations. and polishers, verifying the quality of paddy rice Tilda Uganda, a private enterprise run by the before it is processed at Tilda’s modern rice pro- Tilda Uganda is located 168km on the Kampala- combing through the rich clay soils. Thakrar family, has been instrumental in con- cessing plant, an investment that the Director, Malaba highway. It is impossible for anyone travel- tributing to and catalyzing Uganda’s production. Venugopal Pookat, calls “world class facilities.” ing on the country’s main eastern route not to notice Tilda is by far the most mechanized agricul- Production has increased from 60,000 tons in it. Tilda’s rice 9,600 acres of rice paddies straddle tural operation in Uganda. It has backward and 1997, when Kibimba was privatized in the na- “75% of the rice we produce is consumed in the the highway. Typically you would find that some are forward supply chain linkage. Tilda is well con- tional divestiture program, to 350,000 tons in domestic market. The balance is exported to flooded by seasonal rains and the irrigation cycle, nected to out-grower farmers in the neighboring 2012. The turn-around at Kibimba happened neighbouring East African Countries,” Pookat others have young shoots ready to take in the sun- districts, carries out scientific research into rice with an investment of $25m, of which $1.75m shine, and some have massive combine harvesters varieties, chemicals and fertilizers; and also op- came from the IFC/World Bank. CONT. ON PAGE 222 220 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 221 Enterprise: Divestiture (Far left) Fried rice is a particular favorite in Ugandan homes and restaurants (Left) October 1971: President Idi Amin (first left) being shown maps of the then Govern- ment-owned Kibimba Rice Scheme by Chinese experts. Photo/DS Archives (Below left) A combine harvester cutting, threshing and cleaning grain in the vast acre- age of paddies (Below right) Tilda Uganda’s plant has a new processing factory (in background) (Bottom) A worker tending to young shoots in the paddies. Photos/Laura Walusimbi Ugandan Rice Back on the Dinner Table CONT. FROM PAGE 221 neighboring community. The community also says. “The main market for various brands of Tilda supplies a lot of Tilda’s raw product through an namely Tilda Kibimba Rice, Tilda Classic Aromatic, outgrower scheme, providing a good and steady Tilda Crystal Rice and Tilda Rice Halves is the do- income to rural families for livelihood. mestic market in Uganda, Western Kenya, Southern Sudan and Eastern Democratic Republic of Congo. By mid-2013, Tilda was raising a dam to enable Tilda’s fortified rice flour production begins later this it irrigate the 1,200 hectares of land that are not year, which will also be exported to these markets” yet under cultivation. Irrigation capacity was at 4.5 million cubic meters of water, but the plan is Mechanization is widely used here - land preparation to have 15 million in order to maximize produc- is carried out by 450 horsepower tractors, planting tion on the available land. If the dam is raised by is by aerial seeding, and harvesting is done by com- 2.5 meters, as many as 3,000 out-grower farm- bine harvesters. These are assisted by a labor force ers would be able to benefit from the irrigation of 1,200 in the high season, drawn mainly from the waters, 222 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 223 Business: Divestiture Cost of Doing Business the utilities, and the allocation of plots. There was also the Standards Strategy under the That never lived to reality. The Investors Round- table was to advise the President on what works and what doesn’t. Foreign investors that have Must Reduce Uganda National Bureau of Standards, and law invested across Africa like Coca Cola are the kind reforms under the Uganda Law Reform Commis- that used to sit around the table and say, “In sion, to which PSFU proposed 17 business laws. Ethiopia, this is what happens and this is why we At the end of the project not many of them had put our money there,” so that the President is in- been approved. This remains a challenge for ad- formed and causes action across the ministries. Gideon Badagawa is the Executive Director of the Private Sector vocacy, but we have started and eight of them But again there is a challenge of the mindset. are now approved and five assented to. Foundation Uganda (PSFU). He has been with the Private Sector for The Roundtable was put on hold as PSCP II came 12 years, and he shares his evxperience. PSFU was established in Advocacy is a process - PSFU assists Govern- to an end. The President thought that probably it ment to shape that policy based on the National was not working and he instituted the Presiden- 1995 through a tripartite arrangement between the Government, Development Plan, the manifesto of the ruling tial Economic Council. The intention is to have a the World Bank and 11 Private Sector associations. He explains: party, and PSFU’s own platform. Those policies new approach where the investors will come in, we feel are crucial for the Private Sector to be but much of the work remains with the Public able to propel forward. Sector. Mixed trends in cost of doing business over the decade This is one of those major activities that have If the World Bank had not intervened in the Pri- been funded by the World Bank since PSFU’s vate Sector we would be way back, starting with PSFU’s Executive Director Gideon Badagawa. inception. There are more than 125 business certification. We have been singing about AGOA Photo/David Sseppuuya associations at national level - the bankers as- (the US’s Africa Growth and Opportunities Act) 200 sociation, the insurers association, the farmers’ because we cannot go to the American market 180 program primarily focuses on them, coming out federation, and so on. unless we are certified. of an idea of the first $18 million Private Sec- 160 tor Competitiveness Project (PSCP), from 1995- The Presidential Investors Roundtable’s purpose The other key contribution was the establish- 2002, supported by the World Bank. under PSCP II was that Government and a group ment of the credit component, the Credit Ref- 140 of investors, both local and foreign, would come erence Bureau (CRB), which is essential to the The concept of PPPs (public private partner- together to share options for the investment cli- Private Sector for accessing credit and business 120 ships) has strengthened; initially when PSFU mate. finance since one long term challenge is loan was set up to support Government formulat- defaulting. You borrow from one bank, can’t 100 ing policy and monitor the performance of the For instance if I am an investor and I want to pay back and you run to another bank. CRB ad- economy, not a lot of appreciation was coming build a factory, I would not be looking at a 10- dresses this. 80 from Government. But today our input goes year tax holiday; I am looking at whether the into public policy-making including the budget country has the utilities. “Do you have power; do PSCP II has also handled constructing of a na- 60 framework. you have water? Do you have good roads so that tional land information center which is comput- if I established in Mbarara or Kapchorwa I can er-linked to 13 zonal offices around the country. 40 In 2012, more than 80% of the proposals PSFU be able to transport my produce to the market?” 20 put across were taken in the budget speech In the new Competitiveness Enterprise Devel- framework paper, which is a result of the part- If someone else is offering a better bargain opment Project (CEDP), with a budget of $100 0 nership, which has been supported by the World like Kenya or Ethiopia, then the investor will million, there are four main components: Land 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Bank. go there, so it is not about giving a 20 year tax Administration Reform, Business Registra- holiday, but to do with the legal framework and tion and Business Licensing Reforms, Tourism Share of cost of star ng a business in per capita income The PSCP II began in 2004; it was wider in scope, the business environment. Counterfeits, among Competitiveness Development, and a Match- beyond investment facilitation and support, ad- others, have been one of the key challenges of ing Grant Facility. Tourism is taking a big chunk A tenth of share of cost of dealing with construc on permits in per capita income vocacy, and the BUDS. We included other com- the Presidential Investors Roundtable. of money - it has potential for Uganda. We are ponents like computerizing the Land Registry revamping the Hotel & Tourism Training Insti- Source: World Bank 2013 Doing Business Indicators ($23 million). We think land is not only about I remember in the initial Roundtable, we were tute in Jinja, and will do a lot of skilling, product agriculture. If you have a land title you can eas- debating business priorities; we were meeting development, value chain in the tourism sector, ily access a loan from a bank, and you can access every six months, and the Prime Minister was and marketing. In the early 1990s Government wanted to institu- was started as a matching grant: To-date over markets. going through the progress made, and the chal- tionalize public private partnership dialogue to fos- 5,000 enterprises have had PSFU support in lenges, but you would realize that often, not Next we are looking at matching grants (the ter an environment for enterprise growth, primar- capacity building and training. We try to under- The other component was the investment park much was happening in implementation even BUDS), we are going to look at a defined scope ily to reduce the cost of doing business. In Uganda stand the enterprises and the business that they in Namanve, under the Uganda Investment Au- after you had agreed on a number of fundamen- of activities focused on specific sectors especially raw materials are imported so if the country does are in, and together we try to come up with solu- thority, to build local enterprise competiveness tals. The challenge was with the implementing coffee, grains and pulses, maize, edible oils, fish- not handle transportation, the legal frame work, tions. We have been doing a 50-50 cost-sharing with export as a target. institutions and ministries. eries and horticulture, and ICT. This is going to and the institutions meant to facilitate private sec- arrangement with these enterprises. be funded by the World Bank as well. CEDP is a tor growth, it will remain a high cost producer and This $27 million project faced a number of chal- The President was clear on where we wanted to request from the Government of Uganda; it is a therefore unable to be competitive. PSFU is focusing on small and medium size en- lenges and at the end of five years it was not go. He would to say, “We need to move like this.” loan; it is not that somebody is giving you some terprises (SMEs), which make up 90% of enter- completed, but is a start. There was a master I remember him standing up to say, “We want kind of free money. It is Uganda’s money actu- The Business Uganda Development Scheme (BUDS) prises in Uganda’s Private Sector. So the BUDS plan, but the challenge was the infrastructure, this railway yesterday.” ally. 224 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 225 Enterprise/Business Laws: Divestiture Business Laws Reviewed by Law Reform Commission The Private Sector Foundation of Uganda is not mandated to devel- op bills. Under PSFU’s Private Sector Competitiveness Project II, the Cooperative Union Uganda Law Reform Commission who are mandated to review and draft bills, were supported to review priority business/commercial- related bills. The following were reviewed: is a Privatization Star (Above) Florence Betty Masereka, the treasurer of Kasese Youth Nyakatonzi Growers Co-oper- ative Union. (Top left) Nyakatonzi’s AGM. Pho- • Trade Secrets • Companies bill tos/Laura Walusimbi • Contract • Chattel Securities • Trade Marks and Services • Geographical Indicators The hands shoot up with impressive regularity. It could be a wedding way through becoming a private entrepreneur, • Partnership • Industrial Property reception, for the men are in suits and many women in colorful floral through an insurgency by Allied Democratic Force rebels who terrorized Kasese from their dress. But it is the annual general meeting of Nyakatonzi Growers rare bases in Congo, to relative prosperity today. • Hire Purchase • Free Zones Cooperative Union in Kasese, Western Uganda. • Electronic Transactions • Sale of Goods Nyakatonzi and the seed operation are both For a collection of rural farmers, this is a well-in- in the mid-estern region, has had to work from profitable, and so is their warehousing service • Digital Signatures • Investment Code Amendment formed group, who appreciate what they are into, scratch to restore Uganda Seeds, whose old man- for farmers. Alongside the warehouses, farm- • Computer Misuse • Counterfeits and know what they want. About 250 of them are agers stole or sold assets with privatization in ers are availed tractors for ploughing, trucks to gathered in a hall in the town center of Kasese, the the offing. “They did a big disservice to us. Ugan- transport produce, training, crop finance, field • Insolvency • Mortgage main city near the border with the Democratic Re- da Seeds had combine harvesters and tractors, extension services, and expertise for marketing. public of Congo. but these were not handed over at divestiture,” The warehouses store seed for the farmers till • Capital Markets recalls Florence Betty Masereka, a 60 year old marketing opportunity comes. Nyakatonzi is one of the few old cooperative unions farmer and social worker, who is particularly ac- that are still thriving, their success owing partly to tive in Nyakatonzi. the purchase of Uganda Seeds, a government-owned business, in the national privatization drive of the The treasurer of Kasese Youth Nyakatonzi Grow- 1990s. ers Co-operative Union, Masereka has seen Nyakatonzi through the early years of uncer- Source: Private Sector Foundation of Uganda Nyakatonzi, which groups 62 cooperative societies tainty as the multipurpose union grappled its 226 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 227 Transactions: Privatization Divestiture by Sale of Assets Enterprise Buyer Participant Acholi Inn Ms Laoo Ltd Ugandan African Ceramics Co. Muhindo Enterprises Ltd Ugandan Hilltop Hotel Three Links Ltd Ugandan Hotel Margherita Reco Industries Ltd Ugandan ITV Sales ROKO Construction Foreign Lira Hotel Showa Trade Company Ltd Ugandan Masindi Hotel Ottoman Engineering Ugandan Mt. Elgon Hotel Bugisu Cooperative Union Ugandan Mt. Moroto Hotel Kodet International Ugandan Divested Enterprises The World Bank acted as Trans- action Advisors for the privati- NYTIL Picfare Ltd Foreign PICTORIAL zation process Rock Hotel Swisa Ind. Ltd Ugandan Uganda Cement Industries Rawals Group of Industries Foreign (Hima) Uganda Cement Industries Corrugated Sheets Ltd Foreign (Tororo) Soroti Hotel Speed Bird Aviation Services Ugandan Uganda Garment Industries Phoenix Logistics Uganda Ltd Ugandan Uganda Leather & Tanning IPS (U) Ltd Ugandan Industries Uganda Meat Packers Uganda Meat Industries Ltd Ugandan (Kampala ) Uganda Meat Packers (Soroti) Teso Agric Industrial Co Ltd Ugandan Uganda Spinning Mills (Lira) Guostar Enterprises (U) Ltd. Foreign Kabale Development White Horse Inn Ugandan Company White Rhino Hotel Dolma Associates Ltd Ugandan Divestiture by Share Sale Enterprise Buyer Participant African Textile Mills P.S. Patel Ugandan Agip (U) Ltd Agip Petrol International Foreign MIDROC Ethiopia plc Apollo Hotel Corporation Ltd Foreign (Sheraton) Blenders (U) Ltd Uniliver Overseas Holding BV Foreign Comrade Cycles (U) Ltd Uganda Motors Ltd Ugandan Kibimba Rice Scheme was a Government-run farming and food-processing enterprise in Bugiri, Eastern Uganda. In September 1996, the Government divested its interest through a share sale to Tilda Holdings, who have since expanded the venture. (Clockwise from top left) Local labor is used in the rice paddies; Tilda’s produce is prominent on supermarket shelves; the state-of-the-art Quality Control Laboratory; Gathering the ripe harvest us- ing combine harvesters in a highy mechanized farming operation. Photos/ Laura Walusimbi 228 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 229 Transactions: Privatization International Distillers & East African Distilleries Foreign Vintners Kibimba Rice Co. Ltd Tilda Holdings Foreign Kinyara Sugar Works Ltd Rai Holdings Foreign Lake Victoria Bottling Co. Ltd Crown Bottlers (U) Ltd Ugandan Lake Victoria Hotel (PHASE 1) Windsor Ltd Foreign Lango Dev. Co. Sunset International Ltd Ugandan Motorcraft and Sales Ltd Andami Works Ltd Ugandan National Insurance Company Insurance Group of Nigeria Foreign Ltd (60%) PAPCO Industries Ltd Praful C. Patel Ugandan SAIMMCO Steel Rolling Mills Ltd Ugandan Stanbic Bank (U) Ltd SBIC Africa Holdings Ltd Foreign Divested Enterprises The Hotel and Leisure Industry was a particular beneficiary of Total (U) Ltd Total Outre Mer Foreign PICTORIAL divestiture, with many con- Transocean 1998 (U) Ltd Coin Ltd Ugandan cerns leaving public hands TUMPECO GM Company Ltd Ugandan Uganda Commercial Bank Stanbic Bank Foreign Uganda Fisheries Enterprises Nordic-African Fisheries Co Foreign U G M Co.(Phase 1) Calebs International Ugandan Uganda Industrial Machinery F.B. Lukoma Ugandan Uganda Pharmaceuticals Ltd Vivi Holdings Foreign Uganda Telecom Detecom Foreign Divestiture by Joint Venture Enterprise Buyer Participant Agricultural Enterprises Ltd CDC Foreign NEC Pharmaceuticals Ltd Haupt Groupe Foreign Divestiture by Pre-Emptive Right Enterprise Buyer Participant Associated Match Company Madhvani Group Foreign Bank of Baroda Bank of Baroda (India) Foreign Barclays Bank of Uganda Ltd Barclays Plc Foreign BAT Uganda (PHASE 1) BAT Investments Ltd Foreign Mweya Safari Lodge is the main hotel in Queen Elizabeth National Park. Formerly owned by Uganda Hotels, it was privatized in August 1995, by concession to Madhvani Group. (Clockwise from top left) The giant sculp- ture of an elephant welcomes visitors; An information center provides a wide range of information about history, environment, and conservation; Golf carts and safari vehicles provide guests’ transport. Photos/Laura Walusimbi (Bottom right and far left) Kampala’s skyline has for long been dominated by this 5-star hotel. Alternately known as Apollo Hotel, and then Interna- tional Hotel. Apollo Hotel Corporation’s shares were bought by MIDROC Ethiopia plc for a Sheraton Hotel franchise. Hotel photo/David Sseppuuya 230 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 231 Transactions: Privatization ENHAS Efforte Corp, G/Airlinks & SN Ugandan Kakira Sugar Works East African Holdings Ltd Foreign Lake Victoria Hotel Ltd The Windsor Ltd Foreign (Ph. 2) Rwenzori Highland Tea Co. Finlays Groups Foreign Steel Corporation of E A Ltd Muljibhai Madhvani & Co. Ltd Foreign Uganda Libyan Arab Holding Pre-emptive Ugandan Sugar Corporation of Uganda Mehta Group Foreign Ltd Cable Corporation Mehta Group Foreign UGMA Engineering Mehta Group Foreign Corporation Divestiture by Initial Public Offering (IPO) Enterprise Buyer Participant Divested Enterprises By 1992/93 direct and indirect subsidies to public enterprises BAT Uganda (PHASE 2) Public Ugandan PICTORIAL were taking 50% of Govern- DFCU Bank Public Ugandan ment revenues New Vision Printing & Public Ugandan Publishing Co. Ltd (20%) Uganda Clays Ltd. Public Ugandan National Insurance Company Public Ugandan Divestiture by Concession Enterprise Buyer Participant Dairy Corporation Ltd Sameer Agric. & Livestock Foreign Mweya Safari Lodge Madhvani Group Ugandan Serena Tourism Promotion Nile Hotel International Ltd Foreign Svs Second National Operator MTN Foreign Uganda Electricity Umeme Foreign Distribution Co Uganda Electricity Eskom Enterprises Foreign Generation Uganda Railways Corporation Sheltam Railway Company Foreign Uganda Seeds (Kasese) Lease/concession Ugandan Uganda Seeds Masindi & Lease/concession Ugandan Kisindi ULI Ltd - Kiryana Ranch Zziwa Ranchers Ugandan ULI Ltd - Kyempisi Ranch Royal Ranchers Ltd Ugandan Divestiture by Auction (Clockwise from mid-left) The lobby at Kampala Serena; The front expanse of Kampala Serena Hotel; A guest room on one of the floors. There was a complete make-over after Nile Hotel International Ltd was privatized by concession to Serena Tourism Promotion Svs in January 2004. Photos/ Kampala Serena. (Bottom left and right) The top of the skyscraper building that used to house the headquarters of Uganda Commercial Bank before Government divested its interest through a share sale to Stanbic Bank, now headquar- tered in the Crested Towers building. Photo/David Sseppuuya 232 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 233 Transactions: Privatization Enterprise Buyer Participant Foods & Beverages Ltd James Mbabazi Ugandan Fresh Foods Ltd Eddie & Sophie Enterprises Ugandan Kampala Auto Centre Gomba Management Ugandan M. Republic Motors Rafiki Trading Company Ugandan Uganda Hire Purchase Co. Tadeo Kisekka Ugandan Winits (U) Ltd EMCO Works Ltd Ugandan Divestiture by Management Buyout (MBO) Enterprise Buyer Participant Government Central Management and Employees Ugandan Purchasing Corp. Cancelled-Assets owner Printpak (U) Ltd Ugandan Divested Enterprises - Lonhro By mid-2013 more than 90% of parastatals (public enterprises) Uganda Hardwares Ltd Management Ugandan had been divested of Govern- PICTORIAL ment interest in the Privatiza- tion drive Uganda Motors Ltd Management Divestiture by Debt Equity Swap Ugandan Enterprise Buyer Participant National Housing & Libyan Arab Foreign Foreign Construction Corp Investment Shell (U) Ltd Shell Petroleum Co. Ltd Foreign Divestiture by Repossession Enterprise Buyer Participant Nile Breweries Ltd Madhvani Group Foreign Uganda American Insurance American Life Insurance Co. Foreign Co. Uganda Crane Estates Ltd. Buganda Kingdom Ugandan Uganda Securiko Ltd Securiko (U) Ltd Foreign Uganda Tea Corporation Mehta Group Ugandan Total transactions 95 Liquidations/Strike Offs 39 Total divestiture transactions 134 (as at June 30, 2011) Source: The Privatisation Unit (Top) Uganda Cement Industries, Hima was bought by Rawals Group of Industries in a Sale of Assets transaction in December 1994. Photo/Laura Walusimbi (Middle left) In October 2005, Sheltam Railway Company was granted a concession to operate Uganda Railways, which has since become Rift Val- ley Railways (RVR). Photo/Laura Walusimbi (Middle right) National Insurance Corporation was partially privatized through a 60% share sale to Insurance Group of Nigeria in June 2005. Photo/David Sseppuuya (Bottom) The Mehta Group regained its interest in Sugar Corporation of Uganda Ltd by pre-emptive right in December 2009. Photo/Laura Walu- simbi 234 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 235 Technocrat: Insider’s View INSIGHT NINE Dan Kasirye cratic barriers to investment, and institu- million over the next six years. subsequently financed Celtel Uganda (now Air- tional development of the Uganda Invest- tel Uganda following the acquisition of Celtel’s ment Authority. • IFC is also exploring opportunities to sup- operations by Zain and then more recently in port the development of a combined poten- June 2010, the acquisition of Zain’s African IFC Investment Highlights tial of 210 MW of small hydro projects in operations by Bharti of India) the first cellular collaboration with IDA. operator in Uganda, providing a total of $32 mil- lion to Celtel, including a $12 million loan. IFC • IFC provided $130 million in loans to Bu- IFC was the advisor to Kenya and coordinated committed $2.6 million in a risk facility imple- jagali Energy’s hydropower project, a public with the Uganda Government in the privatiza- mented jointly with Stanbic Uganda to assist Celtel Uganda’s dealers to access finance. In the Financial Sector, IFC helped start up the Jubilee Insurance Company of Uganda. Estab- lished in 1993, Jubilee performed very well, and is now one of the largest insurance companies in Uganda. IFC was also an equity participant in Development Finance Company of Uganda $1.5 Billion (DFCU). IFC is engaged in the development of the local financial market, with particular Committed Through emphasis on housing finance, term finance to SMEs, microfinance, trade finance and oppor- tunities for quasi-equity. IFC provided technical IFC Since 1965 assistance advisory using trust funds to carry out a mortgage finance and housing sector ad- visory. IFC has provided long term finance facili- ties to DFCU, Bank of Africa, Orient Bank and Diamond Trust Bank Uganda to promote term finance products for SMEs, including gender Dan Kasirye is the International entrepreneurship markets, health and educa- tion sectors. In the medium term, there will be a Finance Corporation’s Country strong role for IFC in the financial sector Representative in the IFC’s Af- rica Department. In 25 years of IFC supported the Sugar Corporation of Uganda Ltd (SCOUL), Nile Roses (floriculture), White service, he has been involved in Nile Dairies, Gomba Fishing Tilda (rice) and, in the structuring and execution education, Rainbow International School and Kabojja Primary School. IFC will continue to of IFC investments in energy, support agribusiness intermediaries - either fi- telecommunications, tourism nancial or agribusiness companies, such as the and financial markets in Sub Sa- Pearl Dairy powdered milk project in Mbarara, The International Finance Corporation advised the Uganda and Kenyan governments on the privatiza- that in turn finance or purchase materials from haran Africa. tion, by concession, of the joint railway. It was also the lender for rehabilitation and expansion farmers. Photo/World Bank Archives In the Manufacturing and Services Sector, IFC helped start up Kiwa Industries (building tiles) and Polypack Industries (polybags). IFC sup- Since 1965, the International Finance Corpora- Bujagali hydropower and Umeme distribu- • IFC advised on the restructuring of the private partnership with the Government, tion of the joint Kenya-Uganda railways conces- ported the construction of commercial real tion has approved funding for over 50 projects tion concession Telecommunications Sector. This resulted as part of World Bank Group support, which sion. IFC as the lead lender raised $164 million estate for office and retail markets. These in- in Uganda, representing a total project outlay of in significant new private investment in a also included a partial risk guarantee of debt and $82 million equity financing for reha- clude Rwenzori House, Rwenzori Towers, Mosa about $1.5 billion. The IFC has supported Private second national operator, a second cellular $115 million from IDA and an investment bilitation and expansion of the railways system Courts, Dolphine Suites, Conrad Plaza and Ex- Sector development through investments and • The expanding SME portfolio, which in- operator, and a successful privatization of guarantee of up to $115 million from MIGA to cost about $300 million under implementa- ecutive Apartments. IFC is following up with advisory work. The IFC’s strategy has focused on cludes a range of agribusiness with rice, Uganda Telecoms. to Sithe Global Power tion by investors led by Citadel. IFC commit- Uganda Investment Authority on the progress (i) improving the investment climate, (ii) build- dairy and sugar producers, service, and man- ment amounts to $75 million. and potential investors in the Namanve Indus- ing up the capacity of SMEs and micro-enter- ufacturing operations including support to • In the Financial Sector, IFC has supported • The privately-owned power distributor, trial Park. IFC committed a $24 million loan to prises and that of institutions that can support Roofings Ltd steel expansion at Namanve leasing, insurance, and development fi- Umeme, received a $25 million loan and IFC has played a key role in the Telecommunica- assist the expansion of Roofings Ltd, a steel- them, and (iii) proactive support to project de- Industrial Park. nance, and advised the Government on the $5.0 million equity from IFC to localize its tions Sector (reform advisory and investment) coated zinc project at Namanve. IFC committed velopment in the financial, agribusiness, and in- establishment of the stock and securities business and expand its distribution net- and is exploring opportunities to continue to a senior loan of up to $2.5 million to support the frastructure sectors. Major achievements were: • The involvement of local banks to support exchange. work. IFC is also assisting Umeme to raise provide financing. This resulted in significant restructuring and upgrading of IMG’s Kampala • private education following IFC’s First Edu- $200 million for network upgrade, expan- new private investment in a second national International Hospital. IFC’s support for Private Sector participa- cation Project. • IFC was also involved in the reform of the sion of the distribution network and to in- operator, a second cellular operator, and a suc- tion in the power sector with investments in Investment Code, identification of bureau- crease connections, estimated to cost $500 cessful privatization of Uganda Telecoms. IFC CONT. ON PAGE 238 236 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 237 Technocrat: Insider’s View $1.5 Billion Committed Through IFC Since 1965 CONT. FROM PAGE 237 IFC committed an investment of a senior loan of up for Water Development to structure water dis- to US$35 million to support the acquisition, build- tribution contracts with SMEs and to provide ing and maintenance of a telecommunication tower business development services for these private network in Uganda for a total project cost of $153 operators in small towns to partly enable them million. access financing from banks. Housing Finance Advisory implemented a three- year technical assistance program. The program IFC Advisory Services objectives were to (i) launch and/or strengthen mortgage operations among banks in the proj- highlights ect, (ii) improve the legal and regulatory frame- work for mortgage finance, and (iii) develop and Investment Climate strengthen institutions that support the mort- gage market. Key achievements of the program include: (i) Contribution to the enactment of a IFC and the World Bank’s investment climate team modern, market-and-consumer-friendly Ugan- have been reducing barriers to business in Uganda. da Mortgage Bill, (ii) capacity-building support In the upmarket office space segment of Uganda’s commercial real estate industry, the International Fi- The country has made strides in reforming the li- to stakeholders critical for a successful housing nance Corporation supported the construction of Rwenzori Towers in the Nakasero district of Kampala. censing process and tax administration. The Govern- sector such as real estate valuers and agents, and Photo/David Sseppuuya ment is also seeking the World Bank Group’s support (iii) provided training on mortgage lending to fi- in developing leasing laws and promoting the tour- nancial institutions. ism industry. The Africa Micro Small and Medium Scale Enter- tion, and diversification of existing ones. About IFC Public-Private Partnerships prise program aims to enhance access to finance IFC is the Private Sector arm of the World Bank Group. IFC fos- for SMEs through capacity building of client The Africa Project Development Facility (APDF) Uganda banks: Ecobank, Diamond Trust, Bank was established in 1986 as a joint initiative of ters sustainable Private Sector investment in developing coun- IFC’s public-private partnerships team advises the of Africa, and DFCU Bank. the African Development Bank, the UN Devel- tries, mobilizing local and international private capital, and provid- Government on how to work with the Private Sec- opment Programme and IFC. APDF identified ing advisory services and risk mitigation services to businesses and tor to catalyze growth and development. The Health Africa Schools Program has supported Govern- African entrepreneurs and helped them orga- governments, which will reduce poverty and improve people’s lives. in Africa initiative helps the Government build ment efforts to increase access to education in nize, diversify and expand their businesses by partnerships with private healthcare providers to Uganda, targeting over 500 schools. Through the assisting them throughout project preparation. • IFC is the largest multilateral source of financing for private enterpris- improve the quality of services. In Kampala, IFC is program, IFC’s partner banks provided loans to APDF was replaced by the Private Enterprise es in emerging markets. Financing is long-term and market-priced. advising the City Council on involving the Private improve school facilities and services. IFC also Partnership for Africa (IFC PEP-AFRICA) which Sector in waste management. The Government has advised private schools on how to become sus- subsequently became the Sustainable Business • IFC’s share capital is provided by its 184 member countries, which also sought IFC’s expertise on structuring water dis- tainable businesses, with improved risk profiles Advisory (SBA) program. determine policies and approve investments. tribution contracts with private operators. Most re- and operations. cently, IFC was appointed transaction advisor by the The African Management Services Company • IFC has committed more than $20 billion from its own account to Uganda National Roads Authority on selected pub- IFC’s current total exposure in Uganda is $228.8 (AMSCO) helps strengthen African enter- projects during FY12. Since 2008, spending on advisory services has lic-private road projects. IFC is providing transaction million in 10 projects and the current total in- prises by providing experienced managers and totaled approximately $200 million. IFC provides advice to companies advisory services to Uganda Electricity Generation vestment pipeline is $88.3 million in 5 projects. by training local management teams. AMSCO and government authorities in 105 countries. Co. Ltd (UEGCL) to introduce Private Sector partici- provided experts to a number of private sector pation to design, finance, build and operate the Nya- IFC specialized facilities enterprises including financial institutions in • IFC shares project risk with sponsors and financial partners but does gak III SHPP (4.4MW) plant for the duration of the Uganda. not participate in project management. IFC’s charter requires com- Power Purchase Agreement. IFC Infra advisory will Launched in 1989, the Africa Enterprise Fund mercial terms, targeting profitability. also support UEGCL on Muzizi Hydro (26-55 MW). provided debt and equity financing of $100,000 to $1.5 million for projects with a total cost of • IFC does not accept Government guarantees. The Uganda Small Scale Infrastructure Provider $200,000 to $5 million. It financed start-up of (SSIP) Water Program has helped the Department new businesses as well as expansion, moderniza- 238 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 239 PUBLIC SERVICE Public Service SE CTIO N TE N The efficiency of the Public Service has been a dogged challenge for long. Ef- forts to halt the decline in standards and efficiency of public administration, and model a small, well-motivated Civil Service to deliver essential services in an efficient and effective manner continue under the different Government ministries. Public Service Reform has run alongside decentralization in the form of circumscribing the role of central ministries, and assigning to district councils the expenditure and revenue responsibilities related to service deliv- ery system and poverty eradication 240 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 241 Training: Public Service of persons who are already employed in the Public Service A Scholarly Touch at the is the fulcrum. Regular orientation of public officers is seen as essential in improving the attitudes, culture and responsiveness to public needs and aspirations, leading to Civil Service College offering of comprehensive needs-based programs that en- hance technical and behavioral competences. By mid-2013 the College was running three core learning programs: Early Leadership Development (ELD), Com- Out in a leafy suburb of Jinja in Eastern Uganda, just a stone’s petence Based Recruitment (CBR), and Leadership and Change Management (L&CM). The ELD programme tar- throw from the shores of Lake Victoria near where the River Nile gets new public officers, and is designed to instill positive starts its northerly journey, lies a truly scholarly setting. values, attitudes and culture in the new public officers to perform their duties in a patriotic, courteous and respon- sive manner. The CBR program targets all Central and Dis- trict Service Commissions. It is designed to enhance the They may be squatters on the premises of a nearby areas of national development,” says Jane Kyari- capability of service commissions to recruit public officers institution – the National Fisheries Resources Re- siima Mwesiga, the Commissioner of Human Re- with the required technical and behavioral competences. search Institute in Jinja – but the Civil Service Col- source Development at the Ministry of Finance. The L&CM program targets both technical and political lege of Uganda (CSCU) has found a suitable setting, leaders across the Public Service, and is designed to build a well away from the noise and heaving masses of the The National Development Plan and the Policy Pa- critical mass of well-trained professional and ethical lead- town’s central business district. Architectural plans per on Transformation of the Uganda Public Ser- ers that support the country’s transformation. Custom- for the college’s own property are impressive in their vice identified the need for a Civil Service College made training courses in Procurement and Management (Clockwise from top left) The Director, Barbara Senkatuuka and an Advisor, Ulle Purga, breadth and detail, and execution has commenced. as a unique and long-term way of strengthening of Public Assets and Financial Management for all cadres reviewing participants’ submissions during the early leadership development training; quality of human resource to address poor perfor- in Government have also been developed. An artist’s impression of the aerial view of the soon-to-be-built head offices of the Set up in 2010 with a World Bank sector investment mance and the insufficient leadership and man- Civil Service College of Uganda; The front view entry of the college; The proposed loan of $8 million, of which $2 million was for refur- agement capacity in the Uganda Public Service. The quiet environment helps in providing good learning car park. Photo & illustrations/CSCU bishing the physical facility, the CSCU came into be- Barbara Senkatuuka, CSCU’s Director, spells out conditions, but the College is not confined to its campus. ing as part of the Public Service Reform Programme its functionalities, “We are a Civil Service College “Jinja is where the College is based, but we also have what (PSRP) that the Government has been implementing for the entire Public Service, all the ministries, we call a Caravan Approach. We have a big van with all the in phases since 1991 to improve the efficiency and agencies, departments and local governments. necessary training gadgets; so we can move from here to effectiveness of the Public Service. So we relate with them in two ways. We have core Soroti in the east, or Fort Portal in the west and carry out programs that we developed, which cover the en- the training in the clients’ premises. If you don’t have elec- “CSCU was designed to provide in-service training tire spectrum of the country. We also have tailor- tricity we have a generator. We are saying that we can go with special reference to Government machinery made programs. We go to them, carry out train- to even the farthest part of the country,” says Senkatuuka. and re-orientation of public officers, conduct policy ing needs assessment and identify programs for This innovation has saved the ministries and local govern- research and reviews to help move reforms forward, them to access, but we also go and develop cus- ments valuable time and resources that would have been and to support innovative ideas for enhanced per- tomized programs that suit their specific needs.” spent on travelling and accommodating officers during off- formance and public service delivery in the strategic CONT. ON PAGE 244 Continuing staff training and skills development 242 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 243 Training: Public Service Reforms Rationalize Generous Allowances In the years before the World Bank-backed Civil Service Reforms of the late 1980s and early 1990s, the Public Service’s Standing Or- ders (below) had some fairly generous condi- tions. (Above) April 24, 1963: The Salaries Commission of the Uganda Civil Service. Seated left to right: GS Wasswa, Clerk; Thomas Elwood C.B.E., Mem- A Scholarly Touch at the Civil Service Reforms ber; Michael O. Ani, Chairman; Ms Ann Mead, Personal Secretary; Samwiri LN Serwanja, Sec- retary to Commission. Standing: Drivers to Com- Civil Service College Reduce Ministries by Half mission. Photo/DS Archives (Left) The College has a fully-equipped van that CONT. FROM PAGE 243 is central to the ‘caravan’ approach that takes As part of its fiscal adjustment program in the late 1980s and training services to the client. Photo/Laura site training. Walusimbi early 1990s, the Government undertook several measures to halt CSC’s popularity is growing, says the Director. “The the decline in standards and efficiency of public administration, leadership and change management program started and to create a small, well-motivated Civil Service to deliver es- in Jinja, but we have rolled it out in five regions - Northern, North Eastern, Western, and South West- sential services in an efficient and effective manner. da progressed, however, it became apparent that ern and now the Central Region.” democratic decentralization was the driver of state transformation, and effectiveness would There is a feedback mechanism that has brought a The measures included a reduction in the num- The Commission recommended a more thorough depend on whether it could responsively sup- lot of encouragement to the staff. “People are say- ber of ministries from 38 in 1989 to 21 in 1994. review and revision of Public Sector remunera- port the development of local governments. ing that this college should have started a long time tion (including salaries and benefits) and grad- Authored by ago. When they attend the programs and experience There was rationalization in ministerial struc- ing policies; improvements in payroll admin- In addition, the $36.4 million 1994 Capacity Samwiri Serwanja the kind of training provided, they feel that what is tures, withdrawal of Government from direct in- istration; restructuring in line with functional Building Plan for Uganda, based on the 1990 sec- in his capacity as Permanent being taught touches their own lives and their in- volvement in productive activities, a significant decentralization; strengthening of personnel tor report on capacity building prepared by the Secretary in the Ministry of Public Service (1972 - stitutions. One participant realized that he was the reduction of Central Government staff from and ethics management; and development of Government and IDA, was designed to help co- 1991), the Standing Orders were regulations gov- erning the terms, conditions, and discipline of pub- problem in his institution, that he was one of these 320,000 to 148,000 by 1994 (through the re- policies and procedures for asset and facilities ordinate donor assistance in priority areas. The lic officers. They outlined, among others, probation senior problematic leaders, and he was blaming his moval of ‘ghost’ workers, redundant employees, management. Capacity Building Secretariat in the Ministry of and appointment, transfer within service, grievance colleagues, but he realized that he was the bottleneck over-aged civil servants, as well as poor perform- Finance and Economic Planning was tasked with procedures, handing-over and taking-over proce- to the institution’s smooth running, that he had to ers), and increases in real wages of civil servants. After the PSRRC report and the downsizing of the policy and coordination role to guide capac- dures, discipline, and pension and gratuity. The change. So with such feedback, the College feels mo- ministries, the Government, with external as- ity building efforts. Several priorities emerged: fairly generous conditions included the allocation of tivated that they are beginning to make a difference. However, a 1990 report of the Public Service Re- sistance including the IDA-financed Uganda legal and judicial systems, the accountancy pro- staff housing, travel allowances, medical and den- Others say that, ‘even our juniors should also have view and Reorganization Commission (PSRRC) Economic and Financial Management Project, fessions, local training institutions, manpower tal care, study leave, duty allowances, and spousal the opportunity to be trained’,” notes the Director. identified the importance of advancing Civil Ser- focused on restoring the efficiency of core Cen- planning, economic policy analysis, return of travel. Most of the latter were withdrawn as the vice Reform beyond the immediate fiscal con- tral Government functions like budgeting and skilled Ugandans, local consultancy profession, reforms targeted cost control. The Standing Orders The College has started with a focus on senior lead- cerns associated with staff size and wage bill sus- financial management. technical and vocational training, contribution were reviewed in 2009. ers, managers and new staff in the Public Service, but tainability to longer term issues of incentives, of women to policy development and manage- part of the strategic plan is to extend further down restructuring, and operational effectiveness. As the Government’s Public Sector reform agen- ment, and non-governmental institutions. to middle management as well. This will ensure that middle managers have an excellent environment to learn in and implement what has been taught. 244 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 245 Testimony: Public Service Early leadership training and staff orien- tation for newly recruited civil servants. Photo/CSCU anyone since their salaries will continue to flow rifice, patience and bold decision makers, who for as long as they are alive. As Government, we have the capacity to challenge the systems and must learn from the Private Sector and borrow to inspire others. best practices in order to cause the change that we desire. Lastly, I ask the leadership of the College not to be like the majority of the Government institu- We know that despite the low funding from tions that have been set up to challenge the sys- the Central Government, some districts cannot tem and have ended up becoming worse than the utilize the little money meant for critical sec- old system. For some of us who have so far en- I was Transformed by the tors like Water and Health in time (the financial joyed your services, we do appreciate your pack- stereo-typed culture among the majority of year). We have continued to see many districts age and you will continue to receive our support. civil servants and politicians. It has almost be- returning unspent balances to the Treasury even I hope and pray that this training can extend to come the common belief that the Government when these funds were disbursed early. There- our parliamentarians and later to the lower local Civil Service College should increase salaries in order to improve the performance of civil servants. It is evident in some sectors where salaries were increased that there is no direct link to improvements in per- fore, what is urgently needed is to have leaders, both political and technical, who have the capac- ity to inspire their employees, who can challenge the systems in order to expedite the much-need- governments. I look forward to a future where our civil ser- vants can work five days a week and eight hours formance or reduced levels of corruption, the ef- ed services in most Ugandan communities. day, where we have less or no corruption in our ficiency challenges will remain if no leadership government institutions, a day where all kids Silver Mwesigwa is the Speaker of Isingiro District in Western Uganda. and change management skills are developed. I, therefore, implore the policy makers to give all can access quality education, and I dream of that He participated in leadership training at the Civil Service College, the support needed to empower and functional- day where all health units will be able to serve and he recounts his life-transforming experience. As part of our recommendations, we agreed that ize the Civil Service College in order to have a patients 24/7 with no women and children dy- we must focus more on changing our mindsets, work force that is genuinely concerned about the ing at child birth because of negligence. I cannot attitudes and character towards work, work- development of this country and reversing some wait for that day when majority of our politi- “About two weeks ago, I attended a workshop on leadership. These workshops have come at the mates, and the people we serve. Until we have of the negative trends like corruption, poverty cians will truly care for the needs of the poor and leadership and change management organized by right time when we have continued to see stories self-motivated leaders in districts, we will con- and illiteracy in our society. stop exploiting the poor’s woes to enrich them- the Civil Service College of Uganda. The College has in the media of in-fighting and conflicts either tinue to see the same slow results in the general selves. The public has had enough of the beau- been conducting similar training for all the district between politicians or between politicians and performance even if the Government doubles As we strive to achieve middle income status tiful speeches and promises; what we need as a chairpersons, resident district commissioners, dis- civil servants in some of our districts. This has every one’s salary. The Public Service usually by 2040, let us focus on how best we can have country is focused leaders right from the LC1 trict speakers, chief administrative officers, mayors been one of the greatest challenges to service de- employs the best of the best employees at en- self-driven and patriotic civil servants and poli- chairperson that can be assessed by what we and town clerks across the country; region by region. livery, as was noted at the workshop. try level. Within a few years, majority of them ticians who truly care more about the needs of have done and not what we promise to do.” are inducted into the Civil Service culture of their constituents than how to survive and win I must commend the team for having a very well- I believe most of the challenges we have at the (being) “permanent and pensionable,” meaning the next election. I am personally convinced that (Adopted from the New Vision newspaper, Kam- organized and well-packaged message to the district local governments are associated with some that they have no pressure to be accountable to we can achieve this but it will require a lot of sac- pala, February 26, 2013) 246 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 247 Govt Payroll: Public Service Finally Public Servants Catch Up With Payroll System Implementation (Left to right) Mountains of paper and manual filing shall reduce. A digitalized system will ease data entry and analysis. Photos/Laura Walusimbi and pensions directly to recipients’ accounts; took a decision to introduce a modern and integrated communication among all Government in- and continuous training and support supervi- system for personnel, payroll and pensions manage- stitutions. sion for payroll managers. ment. The IPPS will help move the reform agenda forward by streamlining and modernizing manage- The Joint Venture Team commenced work A long-term boast by people in the Private Sector over their compa- There was also the review of HR business pro- ment with proven technology. in October 2009 and by mid-2013, new HR triots in the Public Sector has been on payment of salaries. The ar- cesses, and implementation of the recommenda- business processes had been developed; chetype was that public servants needed to borrow (usually from the tions by the Inspector General of Government The work started in 2002 when a system study was the hardware and software delivered and and Auditor General to improve payroll and pen- commissioned to identify and document the busi- installed at the Ministry of Public Service privately employed) to pay back in mid-month when their delayed sions management. Success included the reduc- ness processes, information needs and technological and at the pilot sites; the personal files at salaries would hopefully be paid. tion of invalid bank accounts on the payroll from solutions. the 11 pilot sites had been scanned; IPPS 50% in July 2008 to the current 1% in 2013, and Users trained; and the data center refur- timely payment of monthly salaries and pen- IPPS will provide a single interface for public officers bished. But no more, if the Integrated Personnel and Payroll payrolls; and manual and standalone human sions. to perform HR management functions effectively System (IPPS) lives up to its billing. resource systems came under the loop. and efficiently in an integrated environment. HR All public officers will have access to the There are still delays in providing critical human activities can be undertaken with greater ease and IPPS to change their bio-data, which they Under the Public Service Reform Programme, a The Public Service Reform Programme has insti- resource information for decision making; the speed; the HR data will be centralized in one data are authorized to change, and to apply for number of human resource management problems tuted specific measures to modernize the human processing of salaries and pensions still experi- bank, which will make it easier for all Government leave and promotions through the self- were identified for urgent attention. Poor establish- resource information system. Computerizing ences challenges; wage overruns still occur; and institutions to use. Automation of administrative service portal. They will be equipped with ment control and records management, wage bill the active and pension payrolls; strengthening ghost workers are still being reported. But this is human resource processes will enhance productiv- skills to receive and use the IPPS depending overruns, combined with poor internal system con- internal payroll controls with improved account- mainly due to the fact that most of HR processes ity through faster processing, better work environ- on their roles and responsibilities. trols and delay in accessing staff on the active and ability; continuous payroll cleaning and update are still manual and are not digitally integrated. ment, and reduction in mistakes and errors, as well pension payrolls. Furthermore forgeries of appoint- of the pensions data; standardizing salary pay as overlapping work. The IPPS will enable the shar- ment and deployment letters; invalid records on the day as the 28th day of the month; paying salaries In order to find a lasting solution, Government ing of information more quickly and allow for faster 248 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 249 Records: Public Service National Archives: A Promising Future for the Past The earliest written official records of Uganda at the Na- tional Archives date back to 1890, when Captain Frederick Lugard was laying the ground for British colonial rule. This record is probably not surprising, given that literacy and formal writing also dates back to about the same time. (Top to bottom) The current filing system is What is probably more surprising is that today, the has probably not helped in giving the National cramped, installed in the basement of an old National Archives’ latest entries are records from the Archives a settled sense of belonging. Created in building shared with many other Government 1970s! Yes, the 1970s. 1955, by Independence in 1962 they were under departments in Entebbe; A newspaper clip of the Office of the President. In 1994 they were historical national events in 1979 that can be ac- Located within the limited confines of a Government transferred to the Ministry of Public Service. In cessed in the Archives; The architectural plans of complex in Entebbe that houses, among others, the 2003 they reverted to the Records & Informa- the multi-storeyed building to be constructed for National Agricultural Research Organisation’s head tion Management Department of the Ministry the National Archives in Kampala. Photos/Laura office, the National Archives has a small office on the of Public Service. Walusimbi ground floor. It seats two officers. Its only other space is some square meters of the basement, amounting Nevertheless, in their limited way, the staff at to not much more than three average Ugandan living the National Archives has done a sterling job in rooms, whose height is 6 feet and 6 inches, slightly preserving and putting to order what little pre- taller than the average Ugandan adult male. This is cious chronicles that are in their possession. The where records are kept. available space is stacked, in orderly fashion, with file upon file of annals. They are all stored Because of limited space, the three officers (compared in acid-free boxes, whose security is further as- too big to fit in the 6ft 6in-high basement. to Kenya National Archives’ 240) who comprise the sured by an annual fumigation exercise. Even entire staff, cannot take in more material. They sim- though it is fully packed, retrieval is easy be- The institution will receive a real boost with the ply cannot accommodate anymore. “Many records cause of the spaciousness of the shelves and the coming construction of modern facilities in a are still lying at the districts, because here we have chronological order and compartmentalizing of World Bank-funded project. The site has already no space,” says Archiving Officer Justine Nalwoga the stacking. Most of all electronic cross-refer- been set aside at 8-10 Lourdel Road in Kampala, Lukwago. “We cannot even visit the districts (to as- encing in the ground floor office makes research and structural plans have been drawn and ap- certain the records’ status) – there is no budget. We that little easier. proved. assume that the District Records Officers are looking after them.” Other records are at government minis- The National Archives have received support in “With the new premises, we shall be able to re- tries, each of which has a mini-record center. the past, including a donation of equipment by deem (records) backwards by 30 years,” enthuses DANIDA. That equipment, according to Lukwa- Nalwoga. That promises a good future for the Being bandied around from one ministry to another go, included a microfilm camera whose size was country’s past. 250 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 251 Technocrat: Insider’s View INSIGHT T EN Barbara Waliggo Q: What is CSCU all about? We have four core functions: Public Service to roll it further. Some managers are requesting to put their teams together so that they can also ben- efit from the leadership and change management Senkatuuka training and orientation of public officers; sup- programs. porting Public Service research; providing advi- sory services to Government; and supporting in- Q: Do you see that as something for the novations in performance and service delivery. future? Q: What was the situation before the Yes, it is part of our strategy; we have to roll it down World Bank’s intervention? to at least middle management as well. The Public Service had been branded as ineffec- Q: What was on CSCU’s premises before? tive when compared with the pre-reform Public Attitude Change Will Service which was a model, where people were The National Fisheries Resources Research Institute, proud to work in the Civil Service. But over the but they were not using this building. So the minis- years (through the 1990s and 2000s) things try was innovative: Instead of waiting for us to get Transform Public were not as good. So this college was established our own building, we started business out of these to see whether it could change the (degenerate) premises; after all, we have a caravan approach. So attitudes. they worked out an arrangement with the National Service Q: How do you relate to the other min- istries and the rest of the broader Civil Agricultural Research Organisation (under who the Institute falls); so this is a temporary arrangement but next to us is land where our college will be. Service? We have come up with building designs, which we The Civil Service College is for the entire Pub- have submitted to the World Bank, we are waiting for lic Service: All the ministries, agencies, depart- a no-objection then we shall start refurbishing that ments and local governments. We have core facility and move in. $2.5 million was committed for programs that cover the entire spectrum of the operationalization, and $2 million was set aside for country. We also have tailor-made programs. capacity building, especially for the leadership and We can go to the client, carry out training needs change management program, while $1 million went assessment and develop customized programs into renovations. that suit their needs. Q: Key developments? Q: How is demand for your services? We held the first Public Sector Innovation Confer- Demand is increasing as people get to know ence in 2012 using the support of the World Bank. about the College. We are still a young, grow- We are trying to raise the innovation consciousness ing college but we are marketing ourselves. We among public servants to do away with the attitude started in Jinja, Eastern Uganda, but we have of “business as usual”, because we are living in a dy- rolled out in five regions - Northern, North East- namic world and things are changing. We cannot ern, Western, and South Western and now the continue being the traditional civil servant if we are Central Region. going to compete globally. Q: What feedback do you have that At the conference we recognized seven institu- helps improve efficacy? tions which included Mulago Hospital, Gayaza High School and the Public Service Commission. We feel Some people are saying that this college should proud as a college to have spear-headed something have started a long time ago. When they attend like this and we are going to ask the award recipi- our programs and the kind of training we have, ents to replicate some of these innovations in other they feel that what we are saying touches their institutions. So every year we are going to call this Photo/Laura Walusimbi own lives and the institutions. conference and recognize even more Public Service Barbara Waliggo Senkatuuka is the Director of the Civil Service Col- institutions. lege Uganda. Established in July 2010, the College is under the Min- Q: Are you focusing more on leader- ship? istry of Public Service, and was funded initially by the World Bank, with $8 million, to build the capacity of Civil Service institutions and Yes, senior leaders and managers, but we want to develop human resources. 252 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 253 LOCAL GOVERNMENT Local Government SECT ION ELEV EN The philosophy of decentralization has been most evident at the Local Government level. It has led to improvement in public ser- vice delivery and increase in the ability of the poor to raise their incomes and quality of life. Strategies included strengthening lo- cal revenue policies and legislation, training officials, together with increasing and monitoring revenue 254 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 255 Reform: Local Government Outdated Administrative Structures Democratized and Modernized RC2, the sub-county RC3, the county LC4 and (Left) A municipal road in Malaba, Eastern Uganda, is maintained by the Malaba Town Coun- cil, a beehive of activity that serves Uganda’s busiest land border. Photo/Laura Walusimbi the district RC5. (Above) Heavy earth-moving equipment used by Kigumba, in North Western Uganda. The The nine member executive at every level joined Town Council was curved out of Kigumba Sub County in 2010. Having reached the minimum The pre-colonial form of local government in the central Kingdom other similar executives to form the council at threshold of a population of 25,000, developed detailed structural plans, been declared a the next level, hence all the RC1 executives in a of Buganda was so highly effective that the colonial government parish constituted the RC2 council for that par- district headquarters, and established a stable source of water, Kigumba was elevated from Town Board to Town Council under the Local Government Management and Service Delivery decided to replicate in the rest of the country after it had been ish, and they elected the nine-member RC2 ex- project of 2007-2008. Photo/Laura Walusimbi amalgamated into a larger territory. The local administrative units ecutive that joined other parish executives in the sub-county to form the RC3 council. The differ- which were in many cases aligned natural topography took care of ent RC3 executives went ahead to constitute the the development and maintenance of infrastructure like roads and district or RC5 executive. (The RC4 level that was ‘muluka’ chiefs like enforcement of by-laws. equivalent to a county was ‘skipped’ as a local ad- water sources and of course general administration that included ministrative unit and instead became the unit of The development of the local government units un- collection of various levies. representation in the national legislature – the der the NRM administration has followed an amaz- National Resistance Council or parliament in ef- ing re-alignment to the natural order and this can fect.) Eligibility for office only became restricted be seen clearly in the Kampala district city. The five to Ugandan citizens at RC 3 upwards. divisions of Kawempe, Nakawa, Central, Rubaga and When the territory became the Republic of Uganda, Movement (NRM) established RCs in each vil- Makindye correspond to the original topographical– many elements of the local administration struc- lage all over the country. The RCs were immense- The system worked smoothly and in 1993, the ecological divisions of the ‘kibuga’ (city) as it was ad- tures were retained, but then years of insecurity and ly popular because they were freely elected and Local Governments Statute effectively abolished ministered by the Kabakas (kings) of old. governance problems eroded their effectiveness and the people for once tasted real power to manage the appointed ‘muluka’ (parish) chiefs who had usefulness. their public affairs. been there for hundreds of years and replaced The World Bank has been on hand to assist the Gov- them with elected leaders. All local government ernment of Uganda since the 1990s to streamline, When the National Resistance Army was waging the In 1987, a law was enacted making RCs the of- office bearers in the country had to be elected. modernize and strengthen the local government guerrilla war that finally brought it to power in 1986, ficial basic administrative structure of the NRM The 1997 Local Government Act defined the structures and operations. Under the First and Sec- it set up village committees in areas it controlled to government. Every resident of the village was highest authority as the district, led by the Dis- ond Local Government Development Projects (LGDP handle the security and administrative matters. a member and elective leadership offices were trict Chairman. The President however still ap- I and LGDP II ), the World Bank supported the local These administrative structures were called Resis- open to all residents regardless of their citizen- points Resident District Commissioners (RDCs) governments to acquire capacity to take over activi- tance Councils or RCs as they popularly got to be ship at the village and parish level. The village and some municipalities have ‘council agents’ referred to. Once in power, the National Resistance was RC1 (Resistance Council One), the parish who carry out some functions of the defunct CONT. ON PAGE 258 256 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 257 Reform: Local Government Towns Planned Under LGDP II and Local Govt Management & Service Delivery 2007-2008 Urban Centers in Cluster Urban Centers in Cluster Town Boards elevated to Town Councils 1 Gulu, Kitgum, Pader, Kalongo 9 Fort Portal, Hima, Katwe-Kabatoro Tororo, Malaba, Busia, Bugiri, Na- 2 Arua, Nyadri, Pakwach, Paidha 10 • Anaka in Nwoya District gongera • Padibe in Lamwo District Adjumani, Koboko, Amuru, 3 11 Jinja, Kamuli, Lugazi, Mayuge Yumbe, Moyo • Kigumba in Kiryandongo District Entebbe, Mpigi, Kakiri, Nansana, 4 Lira, Masindi, Dokolo 12 Kalangala • Serere in Serere District Hoima, Buliisa, Kigorobya, Kagadi, Masaka, Sembabule, Kyotera, • Aduku in Apac District 5 13 Kiboga Rakai, Kalisizo WERE MUNICIPALITIES, TOWN COUNCILS AND TOWN BOARDS THAT • PLANNED Budadiri UNDER in Sironko District Soroti, Kumi, Bukedea, Kabera- Kayunga, Mukono, Luwero, Bom- 6 maido 14 LGDP II AND LGMSD bo, Wobulenzi, Nkokonjeru Moroto, Kotido, Abim, Katakwi, Mbarara, Lyantonde, Bushenyi, 7 15 Amuria, Kapchorwa Kabwohe-Itendero Mbale, Pallisa, Namutumba, Kabale, Ntungamo, Kisoro, Kanun- 8 16 Busembatia, Kaliro, Bududa gu, Kihihi, Rukungiri Ancient Administrative Structures Democratized and Modernized out and the major ones include the rehabilita- CONT. FROM PAGE 257 tion of infrastructure in Kampala. This saw the re-development of the Nakivubo and Lubigi ties that used to be centralized in the two to three drainage channels. The major markets of Kam- decades after independence. These include planning pala had been renovated and developed by 1997, for development and implementing projects like providing stalls for over 25,000 vendors. Kam- building schools and maintaining roads. The local pala also benefitted from the Bank’s support to governments have also been supported to supervise redevelop roads, manage solid waste, and also contracts and manage public tendering processes. repair and enhance the drainage system. Other important capabilities the local governments have developed with support of the World Bank are physical planning, valuation of properties for taxa- tion, computerization of management functions, New and Old: The new headquarters of Koro Sub planning for infrastructure including roads and wa- County (above) in Gulu, Northern Uganda. Staff ter supply, and revenue enhancement strategies. relocated in February, 2013, from the old quar- ters (below) that were constructed in the 1950s. In urban areas, specific projects have been carried Photos/Laura Walusimbi Source: Ministry of Local Government 258 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 259 Town Councils: Local Government Construction work on the Busawule Road in Mbale has stalled because of the many buildings that have gone up in the road reserve. Under the Local Govern- ment Development Program, sections of the town’s 121.2km road network have been constructed or re- paired, though there are many constraints as well. Photo/Laura Walusimbi gal structures, irregular reclaiming of wetlands, and a host of other problems continues to exercise the minds of the local administrators. In their office, the Town Clerk, the Senior Planner, the Municipal Engineer, and the Accountant, spread out approved plans and contrast the ideal with the reality. Well-demarcated residential, open spaces, recreational land, and commercial areas have all generally morphed into one uncoordinated whole. There are plans for the municipality to become a full- fledged city, but as many as 26.9km of road has not been opened up. A new guideline requires commer- cial properties in business districts to be at least four storeys high, but many developers still construct the 1-2 storeys, similar to the old Asian-style buildings of 60 or 70 years ago. But not all was lost. Mbale, alongside Lira in the Mbale Town Struggles to A lush mountain green, cool breeze, fresh air, north, Fort Portal in the west, and Masaka in the with waterfalls flowing majestically down the south, were the four municipalities chosen in 1997- mountainside, the natural setting was always 98 to start the Peri-Urban Infrastructure Develop- Recapture Old Glories there and all it took was good planning and ad- ment Plan, funded by the World Bank. Fred Mwam- ministration to complete a picture-perfect repu- bu, the Senior Accounts Assistant, remembers that it tation. was “in the suburbs, not the central business district, because the services were targeted for low-income But as was in the rest of Uganda, the social and earners. The services were mainly water and sanita- Mbale was once reputed to be the cleanest and economic breakdown of the 1970s and 1980s tion. We got grants and set up water kiosks.” brought this city to its knees. Today it still enjoys neatest town in East Africa. Not anymore; cer- pride of place as the commercial and administra- Today Mbale’s suburbs of Moni, Boma, Nkoma, Kite- tainly not in the present. Located at the foot of tive capital of the East, it has a booming popula- so, Namatala, and Maluku still enjoy the benefits of tion, and its proximity to Kenya, Uganda’s clos- that intervention, and the subsequent one, the first the Elgon Mountain range, it is easy to see why, est neighbor and biggest trading partner, does Local Government Development Program (LGDP I) back in the 1960s, it was such an idyllic setting. give the town a lift. of 1999-2003. The benefits included capacity build- ing for technical staff, re-tooling and computer train- The challenges of haphazard planning, the con- version of small trading centers into towns, ille- CONT. ON PAGE 262 260 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 261 Town Councils: Local Government Mbale Strategic Development Plan 1997 Source: Mbale Municipal Council Mbale Town Struggles to in the Northern Division, Busawule Road rises from a swamp through fields of yams growing in Engineer Paul Mukasa Kasule, the Program Co- ordinator at the Ministry of Local Government (Left) Fresh fruit and vegetables on sale in Kigumba’s market. The market was re- furbished under a Local Government Development Program project. Photo/Laura the wetland. On either side, the road is hugged in Kampala, says “the Peri-Urban Infrastructure Recapture Old Glories Walusimbi by a grove of banana trees, and it brushes by an Project was aimed at supporting basic infrastruc- elevated latrine, a sign of poor development that ture in municipalities - roads, sanitation, drain- (Above) The well-laid out physical development plan for Mbale has not been im- so frustrate Edison Kasaata, the Municipal En- age, water, and health services. Later on with the plemented as efficiently as envisaged because of financial constraints and non- gineer. introduction of the decentralization policy, the conformist developments World Bank designed LGDP, which was aimed at CONT. FROM PAGE 261 On the Kampala-Gulu corridor that connects the supporting not only the municipalities, the ur- central and northern regions, one of the high- ban areas, but now the whole country with those ing, new roads and road signposts, refuse manage- way towns is Kigumba, whose main benefit from same services. This time it broadened from wa- ment skips, health centers, and furniture in schools. LGDP II was its elevation from a Town Board to ter and roads to education facilities, agricultural a Town Council. Kigumba’s Town Clerk, Gabriel demonstration farms, provision of seeds and The health center is an evident social benefit. Doz- Akugizibwe, outlines the basic criteria for eleva- through a grant, which was being applied for the ens of mothers and small children crowd its veranda tion as being “a minimum population of 25,000, very first time to test how local governments We also introduced a capacity-building grant, which waiting for the doctor’s attention in the early morn- having a detailed structural plan, maintaining could actually deliver these services with very was being managed by the local governments them- ing cool of the shadows of Elgon. Next to the health a stable source of water, and status as a district little intervention from the central government. selves to train people within their jurisdiction: The center, enjoying the very same cool climes, the pupils headquarters.” Kigumba’s physical benefits from councilors, management staff, contractors, NGOs, of Busamaga Primary School recline on desks provid- second Local Government Development Pro- “When LGDP was being introduced, most of the youth groups, women groups, and service providers. ed under the LGDP program, in classrooms built by gram (LGDP II) have been supply of classroom services like schools, roads, and water, were be- This was also a pioneer innovation introduced with the School Facilitation Grant. desks and reconstruction of a 16-stall market. ing delivered by the central government and the World Bank funding. ” World Bank came in to enable local governments Implementation of LGDP I was all-inclusive, a bot- Some 150km farther north in Anaka, another to start delivering these services themselves. We In a hall in Mbale’s Northern Division, it is a Wednes- tom-up approach, says Mwambu. “The villages wrote elevated town, the Clerk Ajabi Okongo is still think that was a major shift in the service deliv- day morning in April and the works committee, com- wish lists”, which were then considered. enthusing about the project “empowering the ery program, because it was the very first time prising technocrats, business people, and elected township to budget and plan, while benefitting that a sub county or district was being given representatives, is meeting. It is a small but comfort- A few kilometers farther from the mountain range, from a capacity-building grant.” money to construct schools, and water facilities ing step forwards towards returning Mbale to its old for its residents. That was a major achievement. glory. 262 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 263 Services: Local Government Local Govt Service Delivery Undergoes Paradigm Shift Engineer Paul Kasule Mukasa has been the Program Coordinator for the Local Government Management and Service Delivery Program in the Ministry of Local Government since 2005, and Sylvia Kera works as a specialist in the Local Government Management and Service De- livery Program. They share about how the Local Government Sector started working with the World Bank in 1996. been living in displaced persons camps, where breeds, and everybody in the community will (Top left) Women and children wait for medical they had no livestock yet traditionally they are benefit. That is one finding. attention at a clinic in Mbale. Photo/Laura Walu- The Bank begun by financing the Peri-Urban Infra- vested in chalk-making, detergents, or wine pro- animal keepers, alongside being crop farmers. simbi structure Project that supported basic infrastructure duction. Another unintended consequence was that some in municipalities, mainly roads, sanitation, drainage, Animal and crop production were the key liveli- communities where the local governments were (Middle) Local Government’s Paul Mukasa Kasule. water, and health services. With the introduction of There are youth groups that have invested in hood activities so when they left the IDP camps, implementing Functional Adult Literacy classes Photo/David Sseppuuya the decentralization policy in the early 1990s, the things that are not necessarily production- they were at loss on how to live. were teaching preparation of project proposals. (Above) KCCA Executive Director, Jeniffer Musisi World Bank designed the Local Government Devel- driven but improve their livelihood like sports (in black), inspecting dredging work on Lubigi opment Program (LGDP), broadening from water and musical equipment. Some have invested in Our thinking was that this is public money so it The Local Government Development grant is Channel in Bwaise, Kampala. Photo/Laura Walu- and roads to education facilities, agricultural dem- football gear. There are groups of disabled people must be invested in items, which will benefit the non-discretionary. The funds can be used on simbi onstration farms and provision of seeds, testing how investing in the laundry business - in Jinja, for majority of the people. For example with shs10 most things - they are not conditional. The result local governments could deliver services with little instance, where they have invested in washing. million, you can build a classroom, which will was that the people were very innovative. There intervention from the Central Government. benefit at least 100 children, or water sources for was a time when the world market price for va- Sylvia: One intervention that we didn’t plan a community, but animals are not consolidated nilla was booming - communities bought vanilla Paul: Some groups have invested in the production for is the enormous investment in livestock in in one place, they are distributed. The one ad- and made people rich. They then branched into sector, some have bought seeds, heifer cows, day- Northern Uganda because the thinking had been vantage is that free-ranging livestock will inter- planting oranges and mangoes, helping the Gov- old chicks, or grinding mills for farmers to be able that such projects benefit mainly the individual act with other animals, which were not donated to crush and package their produce. Some have in- and not the public. However, the people had by the program to bring multiplication of good CONT. ON PAGE 266 264 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 265 Services: Local Government (Far left) The technical committee of the aside 20% and you find that they have benefit- Northern Division of Mbale sitting in a plan- ted being accommodated in offices constructed ning session. Photo/Laura Walusimbi by the local development grant in the sub coun- ties, municipalities and districts. (Left) Gangama Road in Mbale town has been tendered for resealing and drainage work. Paul: There are many districts like that, includ- Photo/Laura Walusimbi ing Mukono, Mbale, Kyenjojo, Kibuku, Oyam, Rakai. Today every sub-county displays how much money they receive, in which quarter and how much they spent. We introduced systems like that to inform about what the money is be- ing spent on. We think that also makes the lo- cal population more aware of what Government does for them; many of them would complain that, “we don’t know anything going on here.” Local Govt Service Delivery war ended many people did not go back to their homes, so we opted to plan the camps as towns ment Program II (LGDP II), seed capital was given to local governments to devise different to say Gulu, which was very expensive. Now we have a lot of contractors all over the country. We So when we construct a classroom it is labeled, “This was constructed with LGDP 1 funds, Fi- so that they could take on the shape of properly strategies on improving the tax base. did a lot of training and if you go to Kaabong, nancial Year this and that.” Undergoes Paradigm shift planned towns. Paul: We also introduced a national assessment Kisoro, or Moyo (see map on page 259), you will have local contractors with capacity to do very Paul: In Northern Uganda during the insurgen- process for local governments. We made it com- many things. cy, led by the Lord’s Resistance Army, very many petitive so that every year local governments CONT. FROM PAGE 265 sub-county and district offices were destroyed. that perform well are rewarded and those not Because they are local contractors, they also use So with World Bank aid we have been able to performing are penalised. The reward was more local artisans while if you get someone from rebuild those that were destroyed and improve grant money the following year. It stimulated Kampala, they would take their people from ernment to identify that there were other priorities those sub-county offices and build new ones performance and we are glad that many coun- the capital city. Also the fact that they are lo- of the community, which had never been explored. in 323 sub-counties, in 54 districts. Every sub tries have copied this system and are using it - in cal contractors helped create some distribution county in Northern Uganda is fully refurbished, Tanzania, Bangladesh, Nepal, and Ghana. We are of wealth throughout the country, because that So it was really a very wise move to send some dis- has staff houses and we are installing solar glad it started here. money remained there. cretionary grants where people can invest in those equipment in 205 of them, as well as providing things Local Government were not prioritizing. The furniture for the 54 districts. Through World Bank funding we were able to Paul: Under LGDP I and II we implemented Government also recognized the significance of the train accountants. By the early or mid-1990s about 12,000 projects, large and small, rang- LGDP grant and took it over from the donors, so the The World Bank also enabled us through these there were only eight registered or qualified/ cer- ing from very small ones where you buy desks bulk of the program has been funded by the Govern- programs to recognize and actualize environ- tified accountants in all the districts of Uganda, to large ones where districts are constructing ment. ment mainstreaming. Local governments were but over the years we trained these accountants bridges or district hospitals. implementing projects without due regard to the for a period of five-six years and by early 2013, Paul: The World Bank supported us in revamping environment. Many times they would just open the numbers have risen and we have trained Sylvia: There are many districts and lower gov- the law on physical urban planning. We had a very ar- roads, construct classrooms, protect springs and more 1000 accounts staff, some of who are now ernments whose offices were built using money chaic law, the Town and Country Planning Act 1951, wells, all without any regard to the environment. registered or certified accountants. The Auditor from the World Bank. The way all programs were but now we have the new Physical Planning Act that General will tell you that right now he gets less designed was that local governments must use only became law in 2011 after ten years of debating. The World Bank also helped to introduce a com- qualified accounts with fewer queries. When we started revising the law, we also requested puterized management tool at the local level, we World Bank to assist us with planning towns, and we call it the Local Government Information and Sylvia: The capacity building program encour- were able to plan 76 Ugandan towns concurrently. Communication System (Logics), for the docu- ages local governments to implement projects The 30 towns were basically IDP camps, which had menting of all projects and storing in a database. using contractors in fulfillment of the belief started growing like towns, so after the war ended We prepared town plans for 76 towns, which prob- that the Private Sector can execute the proj- many people did not go back to their homes, so we ably had never been done before. Government could A lot of effort has been put in valuing proper- ects better than the local governments. The lo- not afford it; towns like Jinja, Mbale, Kabale, Fort ties in all the urban areas of Uganda so that local cal governments are better at supervision so opted to plan the camps as towns so that they could Portal, and Masaka could not afford to prepare their governments can raise some revenue. Property because of that, the local contracting capacity take on the shape of properly planned towns. own development plans, but with the assistance of tax hitherto was something of the colonial era. was developed and local contractors were given the Bank we were able to do that. In the last year we Most of us in Uganda don’t think that paying a chance to execute the projects. Now we have have also planned another 30 towns. property tax is our business; people find it very very many contractors out there who are capable at least 80% of the funds in the national priority alien. of undertaking very big projects like construct- program areas of water, health and education, Sylvia: The 30 towns were basically IDP camps, ing health centers and roads. Previously most but they could use the 20% in other things like which had started growing like towns. After the Sylvia: Under the Local Government Develop- of the contractors would travel from Kampala building offices. Those who were wise would set 266 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 267 Technocrat: Insider’s View INSIGHT ELEV EN Charles The Public Service Reform Programme imple- same structure. Under this arrangement, it was mented by the Government with support from much easier to see how one’s job was graded and Development Partners helped to reorganize compared to the other job categories and profes- ministries and departments by putting appro- sions. Unfortunately, the implementation of the priate structures and staffing in place. The pro- new salary structure did not take off as had been gram, which was jointly supported by the World expected and up to now there are still salary dif- Bank, DANIDA, DfID, Irish Aid and the Nether- ferentials for different professions within the lands, was, among others, aimed at enhancing same scale. Magala performance and accountability of public service organisations. In this regard, the program imple- The Government has expressed a strong prefer- mented a number of interventions to strength- ence to reward scientists better than other pro- en the capacities of the different government de- fessions. This is for good reasons; but we need to partments including job evaluation exercises to appreciate that scientists don’t work in isolation ing partner with government in implementing clarify what each job was about, and determined of other public servants; even in schools if you decentralization reforms and was instrumental the necessary competencies for the holder to be reward science teachers better than for example during the design of the policy and formulation able to deliver to expectations. the English language teachers, you risk destabi- of the legal frame work for decentralisation. The lizing other teachers’ confidence. Similarly when period between 2006 and 2010 attracted more It also resulted in retrenchment where those the judicial officers and medical professionals bilateral donors to support implementation of that were considered no longer productive were got selective pay awards, other professionals like the Local Government Sector Investment Plan Retrenchment Was a either asked to retire voluntarily or were retired in the public interest. The World Bank provided investigators and prosecutors as well as accoun- tants and administrators who provide support through a basket fund arrangement. The basket funds enabled implementation of larger inter- support to the Government to pay terminal service got alienated. ventions, which would otherwise be difficult to Necessary Reform Photo/David Sseppuuya benefits and to ensure that there was smooth support by a single bilateral donor. Similarly, transition into getting leaner and more effective I know that the Government is under pressure to the World Bank through the Local Govern- structures. for example balance between raising the number ment Development Program I and II and later Measure Retrenchment was necessitated by the need of teachers for the Universal Secondary Educa- tion and Universal Primary Education programs, through the Local Government Service Delivery and Management Program also provided useful to eliminate the bloated nature of the Govern- while at the same time paying those employed a project support to the decentralisation reforms ment, characterized by a lot of inefficiencies and decent wage. It is difficult to increase both the in Uganda. duplication. A lot of money was being wasted numbers and the pay at the same time. on people who were unproductive; they were in At a more strategic level, Development Partners the system but they did not have the right com- Implementation of the Integrated Pay and Per- in Uganda have organised themselves under petencies and attitude to work for the Govern- sonnel System (IPPS) was one of the key achieve- the Local Development Partners Group (LDPG) ment. People were simply occupying offices and ments of the Public Service Reform Program where the World Bank has been the de-facto using the Government offices to do other busi- chair. Heads of Development from the different ness. It was therefore important donor agencies meet on a regular for Government to clean up the Similarly when the judicial officers and medical basis to harmonize and coordinate system so that those who re- their support to Government of mained in service were actually professionals got selective pay awards, other pro- Uganda. This coordination mecha- working and doing a good job. fessionals like investigators and prosecutors as nism has facilitated shared analy- well as accountants and administrators who pro- ses on governance issues and fa- The target was to reduce the cilitated common understanding number of civil servants to vide support service got alienated of the factors impeding effective about 250,000 or thereabouts. service delivery in Uganda. There were some sectors with big numbers like that made some strides in getting personnel Education, Police, Prisons and Health and it was information onto a computerized system. The It has also helped in ensuring that there is con- not possible to reduce them below a certain min- manual system of maintaining public servants’ sistent messaging to Government about the key imum. Nonetheless, it was a very useful exercise. records was ineffective and easy to manipulate. reforms. With common analysis, it is easier to The IPPS was designed to ensure that once you agree on a common position and the message to This strategy achieved a number of quick results: got employed in the Public Service, your per- take up in the policy dialogue with the Govern- unproductive staff were released, new ones, sonal information is linked to the payroll system ment. more energetic with better attitude were recruit- and within a specified period, you would gain ed, but there was also opportunity to help them access to the payroll. In addition, if fully opera- get the necessary skills and competencies. The tional, the IPPS would be linked to the pension Uganda Management Institute was instrumen- system so that, as you grow towards retirement tal in running tailor-made courses. the system could easily trigger alerts, for exam- Charles Magala participated in the implementation of Uganda’s Public Sector reforms ple that “Charles is due to retire in the next two from 1989, while working in the Ministry of Public Service. He is currently working as In reviewing and re-strategizing, there was also years and therefore he should also be notified need for the pay reform strategy, which was nec- to prepare for exit”. Such innovations were very Senior Governance Advisor at the Embassy of Denmark in Kampala. He has worked in essary to motivate public servants. Government good for the Public Service. partnership with the World Bank, and other bilateral donors (Austria, Belgium, DfID, expressed commitment to work towards paying a living wage, but unfortunately there has been Together with the World Bank, donors sup- the Netherlands and Irish Aid) through the Public Sector Management Working Group slow progress in this regard. There was an at- porting the decentralization reforms were able and the Decentralisation Development Partners’ Groups, to engage in policy dialogue tempt to introduce a unified single spine salary to enhance collaboration and coordination in with Government on financing and implementation of Public Sector reforms. structure where different categories of civil ser- the policy dialogue with government on key vants were mapped alongside each other in the reform issues. DANIDA has been a long stand- 268 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 269 NORTHERN UGANDA Northern Uganda SE CTIO N TWE LVE Long drawn-out back-to-back insurgencies in extensive parts of Northern Uganda presented a special challenge to the Government and Development Partners. The challenges were at the same time an opportunity to tackle poverty, a key tenet for the Government and its partners. The opportunities still exist 270 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 271 Reconstruction: Northern Uganda The Unique Challenges of Northern Uganda Usually a geographical region would not constitute an offi- cial economic sector in a country. But Northern Uganda has had a peculiar history from the rest of the country since the 1980s, making many ordinary solutions inappropriate to its economic predicament. Even as insecurity gripped large sections of the cen- the Acholi and Lango sub-regions were engaged Normal life has returned to all parts of Acholi following three rebel insurgencies that had left hundreds of thousands of people dis- tral and southern part of the country in the early in soldiering. placed. New amenities like clean water sources helped the displaced persons return to their communities. Photo/Laura Walusimbi 1980s, there was not much economic progress that could take place in the north either because the West After the change of government in 1986, the a long time, most of the Acholi population was financial support over the two decades, it re- Nile sub-region was under extreme insecurity follow- remnants of the defeated armies regrouped living in camps for internally displaced people mained the poorest region of the country with ing the fall of the military regime in 1979 that ended and mounted a serious rebellion in the north (IDPs). But even as the north, especially Acholi, the people of Acholi and Karamoja having the with a large portion of the population fleeing to the that cost a lot in lives. The economically disrup- was under such terrible security and social con- lowest standard of living in the country. And the Congo and Sudan, or because the north east was un- tive and socially destructive insurgency was to ditions, it registered the highest population north was not spared the administrative waste- der the terror of marauding and lethally armed rattle go on for over two decades, making any serious growth in the country in the 1990s. And in spite fulness of the multiplication of districts that rustlers, and a large part of the male population from economic transformation work impossible. For of the north being targeted with considerable CONT. ON PAGE 274 272 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 273 Reconstruction: Northern Uganda (Above) A girl tending goats in an internally dis- After Insurgency, North Faces placed people’s camp during the insurgency. Most people have returned home after the clo- sure of IDP camps. Photo/World Vision Uganda Unique Challenges (Right) Reconstruction work being done by local people, assisted by the Government and Devel- opment Partners. Photo/World Bank Archives tivity. Also skills were imparted in the process. parency and accountability after the return of CONT. FROM PAGE 273 The activities supported by the Bank resulted peace, the Bank conducted a specific public ex- into improving the quality of life and livelihoods penditure review for Northern Uganda so as to gripped the whole country. of the people such as securing water sources, re- identify the weaknesses and to recommend ac- pairing schools and building new schoolrooms, tions to ensure that reasonable value-for-money As the insurgency raged and after it ended, the World improving feeder roads and upgrading them to benefit is obtained from funding to the region Bank-initiated programs aimed at rehabilitating the all-weather roads. that comes from multiple sources, but seems to social and economic infrastructure, mitigating the have far less impact than would ordinarily be ex- devastating effects of the prolonged civil war, reset- A large number of young people had been ab- pected. tling the people and the combatants, as well as help- ducted and forcefully conscripted into the rebel ing the revival of meaningful economic activity. The ranks. Demobilizing, rehabilitating and re-inte- programs have included the $71.2 million North- grating them into society was a major undertak- ern Uganda Reconstruction Project (NURP), the ing, which required the Bank’s support together $100 million Northern Uganda Social Action Fund with international and local NGOs. The Bank (NUSAF 1), and the on-going NUSAF 2. also funded a similar exercise for ex-rebels who were operating out of Congo in the west of the The support for public works was designed in such a country. way as to be labor-intensive so as to engage as many people as possible, giving them gainful economic ac- Mindful of the need to create capacity for trans- 274 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 275 Social Dislocation: Northern Uganda marched deep into the game park. New recruits’ training commenced in the Murchison Falls National Park with parades. Unlike most abductees, I was fa- miliar with the language they were using, Kiswahili, so I was responding and parading very well. Another part of my background was that I was also a scout. The senior officers were resting under a tree and as we were parading, they were watching us closely. A further incentive to parade well was that I was fear- ful of the canes. If you made any mistake, they would cane you. One evening, it was about 7:30pm, and the commander sent for me. He ordered, ‘Can you go and bring for me those recruits? There is that man (Far left) A typical Acholi homestead Kony’s Favorite Apprentice in Koro sub-county, from where Bosco Oyetalit was abducted in 1991. Photo/ Laura Walusimbi Now Teaches Chemistry (Middle) Joseph Kony, the commander of the Lord’s Resistance Army rebel group. Photo/The Daily Monitor (Left) Mr Oyetalit instructing students at Koro school. Photo/Laura Walusimbi As a boy, Bosco Christopher Oyetalit was abducted twice and conscripted into two rebel armies in Northern Uganda. Now 42, he feels like a veteran, but has found his true vocation as a Chemistry and Biology teacher at Koro SS, a Universal Secondary Education school in Gulu. He shares his experience: “It was around mid-day when the rebels struck. The they, unfortunately for me, found a school iden- day was May 11, 1991 and I was going to town with tity card in my pocket and said, ‘Oh! You mean my young brother when we ran into a band of about you are a schoolboy? That is wonderful!’ 250 rebels of the Lord’s Resistance Army of Joseph Kony, which was about four battalions! We were On the second day, May 12, as we were marching about 500 meters from our home in Koro sub-coun- in the countryside, the Operations Commander, ty, a few kilometers south of Gulu town and they ab- a man called Ojok, met his uncle relaxing and ducted us. drinking at home in a village that happened to be on our route. The uncle was a soldier in the My brother was walking behind me, and the reb- government army, the National Resistance els just came running to us and asked, ‘Where are Army, and so he was an enemy. Ojok did a very you going?’ I said, ‘I am going to town.’ Then many terrible thing. He just cut his uncle, his real un- more came and barked, ‘Can you leave that bicycle cle! Just cut him with a ‘panga’ (machete) when group that had interviewed me, ‘If you let this who was parading very well, bring him here!’ He de- of yours!’ people were seeing and burned his uncle’s new man escape, you will also escape from our group.’ scribed us very well. bicycle. The uncle was in full combat uniform. The man was called Ocaya Lagira. I was told he They split us and took us to different groups. The Witnessing this made me think that my end had was from Palabek, farther to the north near the They took me to him and he introduced himself, ‘I am group they took me to called themselves intelligence also come. Sudan border. Mr. Joseph Kony. I am the one heading this group officers or the Control Altar. I was interviewed. They asked me what I was doing and before I could answer They had warned the officer in charge of the Three to four days after our abduction, we were CONT. ON PAGE 278 276 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 277 Social Dislocation: Northern Uganda Kony’s Favorite Apprentice Mr. Oyetalit titrates in his chemistry laboratory Now Teaches Chemistry at Koro Secondary School. His studies were in- terrupted severally by the insurgency and its af- termath, but he still managed to complete his studies. Photo/Laura Walusimbi brother. the IDP camp, and at times I would leave Layibi Now in the first week with the LRA in the Mur- town center and visit them. Relief items were CONT. FROM PAGE 277 chison Park in May 1991, after meeting Kony given out in the school, where I now teach, be- and seeing that he was interested in me, I start- cause of the better setting for distribution and ed planning to escape. I remember the sixth day registration. of rebels. This is Mr. Otti, the second-in-command.’ of our moving to the camp, there was very heavy There were six senior officers. fighting between the Government forces and Today in my role as a teacher in a region recover- this rebel group. They captured about ten Gov- ing from war, I have found psychological issues Then he made a statement that shattered me: ‘I ernment soldiers and tortured them! They were with my students. In 2004 when we started this know you have been a soldier. So please can you tell cut into pieces as people were seeing; you would school there was already a building here but we me if it is true, then you come to my room and I give hear them pleading, but you would see them be- could not access the place because of the insecu- you guns.’ ing hacked and chopped. rity. So classes began as a displaced school near the Gulu-Kampala highway, where it was safer. I told him, ‘Sir, I have never been a soldier.’ And he When I saw those kinds of things I knew I would said, ‘From your looks you must be a soldier.’ We not continue. I had made up my mind. My family At the time there were two students who would were speaking in the Acholi language. had always told me, ‘When you are abducted, es- not eat the food we prepared at school. I asked cape.’ Unfortunately that brother of mine whom them what the problem was. One of them told Then he asked me, ‘From where did you learn how to I was abducted with was killed in 2004. He had me that his father was killed, chopped up and parade very well like that?’ My mind raced back to escaped, in 1991, after me. He was abducted for cooked by rebels, who then ordered the boy to a few years before, in 1987. I told him, ‘This group the second time, taken to Sudan, escaped but feed on him. Now traumatized, the boy could no of rebels were at my uncle’s place when I was very they followed him and killed him. When I came longer muster any appetite for food that is not young, so I know how to parade.’ back from a job interview, I found he was dead prepared at his home. We had to counsel him; at and he left me with seven children to look after. times you would see him begin to cry. We had to Then he asked me, ‘Do you know any of the senior be close to the two of them. Unfortunately this commanders of those days?’ I said, ‘I know’ and he After that battle on the sixth day, I returned to one could not continue beyond Senior 3 (halfway retorted, ‘Who?’ and I told him. the camp, but I knew I had to leave. One shock through secondary school). He joined a security I experienced was meeting a very good friend in company and is now an armed guard.” In fact rebels started disturbing me since 1986. That the bush. She had disappeared from school. She In the UPDA ranks, we would just be used to Science and Technology in year, the first group of rebels to fight President Mu- welcomed me and said, ‘Oh my friend, you are mount road blocks because we were young 1998 and completed my seveni’s government in Northern Uganda was the now welcome. For us we are doing some good BSc Education in Biology Uganda People’s Defence Army (UPDA) of Brigadier work, so you should join us.’ I realized that she and innocent-looking. and Chemistry in 2002. I Odong Latek. Between 1987 and 1989, I was in the had been fully indoctrinated. have been a teacher since, bush with them. I had been abducted as a 15 year-old though teaching science has been difficult. There boy. My parents knew that I was with the rebels. I On the eighth day of abduction, it was raining But even these people who helped us were con- was no laboratory, no lab assistant. Doing prac- spent two-and-a-half years there, and then I escaped heavily in the evening. We had just finished a big stantly changing direction, and coming back to ticals was tricky - we had to carry apparatus into from them in March or April of 1989. prayer when the rain began falling. At about 7pm the same place. On the eighth day of the escape classrooms. But now the World Bank has built I organized a group of five – all of us were school- we heard a gunshot. So we had to move on. On two blocks and a lab for us. Teaching has im- In the UPDA ranks, we would just be used to mount boys. We waited until about midnight, then we the ninth day I managed to make it to Koro, my proved because of the lab. We have got two more roadblocks because we were young and innocent- made our move. We walked through the coun- home. Biology and Chemistry teachers, and at the mo- looking. In those two-and-a-half years, I would get tryside for over two days before we reached the ment, we have four science students in A’ Level. to hear that some of my friends were already in first inhabited home. The people there started to I resumed school in Gulu High for my O’ Levels town and in secondary school. So I escaped to come run away from us, fearing us, till we explained (lower secondary), and then went for A’ Levels By 2004, the Internally Displaced Peoples’ camp and catch up with them. I came out of the bush and ourselves. They felt sorry for us, and then even- (upper secondary) in Lango College between was still open - in fact even by the time I start- straight away returned to school, between 1989 tually led us to the Gulu-Kampala highway. 1994 and 1996. I joined Mbarara University of ed practicing as a teacher my parents were in and 1991, when the LRA then abducted me and my 278 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 279 Livelihoods: Northern Uganda Doreen Abalo, some of whose fam- ily were slaughtered in the Lukodi Massacre, is part of a scheme that has provided survivors with livestock to help them resettle. Photo/Laura Walusimbi ple had run away during the raid. There was nobody to stand with them in their grief. Today the community is trying to pick up the pieces, to dry the tears. To support household incomes and to socially resettle these survivors, the World Bank- supported Northern Uganda Social Action Fund (NUSAF II) has provided cows in a re-stocking com- munal program. The Cows Come Home for The cows graze on expansive pastures in the shadow of giant signage, announcing the ‘Lukodi Memo- Rebel Massacre Survivors side,” she narrates, still heavy-hearted, nine years later. rial Site’, a shrine that ensures that the memories of May 19, 2004 do not go away. Thirty households, including Doreen’s family, are benefitting from two restocking projects. Doreen hid in the latrine, but had enough lati- It was two hours of mayhem that painted another bloody chapter in tude to see her husband run to hide in their hut, “When we returned in 2007 to Bishop Onono On- the history of the 20-year Northern Uganda insurgency. At about 6pm where he removed his clothes. weng village, next to the now disbanded camp, most of us were poor and vulnerable. The sub-county local on the evening of May 19, 2004, Doreen Abalo witnessed, an inde- “Within a few minutes I saw my hut on fire.” She government asked us what it was we needed. We said scribable terror that still haunts her, when the rebels of the Lord’s sneaked out of the latrine, knowing, dreading, we needed cows – the restocking begun in 2013, and that five people were in that hut that was now we expect the milk and beef to generate money for Resistance Army raided her camp. ablaze. She was not immediately aware that her school fees and our general livelihood,” Doreen says, husband had been found burnt alive in that hut. her optimism still guarded by the evident pain of loss It was later, at about 7.30pm, that she ventured and trauma. in and found his charred remains. He was still The Lukodi Internally Displaced People’s (IDP) camp Gulu town, an estimated 150 rebels descended clutching a one year-old boy, the grandson of To the east of Gulu, in Wanglobo village in Koro, was one of dozens of such settlements set up in the on the camp and eventually overcame the army their neighbour who he had tried to rescue. Regina Olowoch is eking out a living with a house- early 2000s in different parts of Acholi to protect the detachment of 40 soldiers. Doreen, then 47 hold that includes two sons, four daughters, and 20 locals from Joseph Kony’s marauding rebels. The idea years old, saw them approach from the eastern By 7.30pm, Doreen’s husband and five year-old grandchildren. It is not easy. But the one saving grace was that clustering communities in one camp, guard- side, setting cylindrical huts on fire. Her hus- baby lay dead, two of 54 camp residents who lost is the Wanglobo Elders Goat Rearing Sub-Project ed by soldiers from the Government army, would se- band was in another house when the raid began. their lives that night. Thirty youth had been ab- that provides the village with oxen for cultivation, cure them from rebels. But on numerous occasions ducted and taken away that night. In the days boreholes as a water source, and goats that not only the LRA breached those defenses and wreaked great “One rebel wanted to enter that house, but that followed, after identifying the bodies, every provide nourishment from meat and milk, but are havoc on the occupants. somehow could not proceed. The door was open, survivor had to bury their own dead – there was also a positive social distraction for young boys. but he could not advance, possibly because he no community to help in the funerals, the way it That May evening in Lukodi, about 20km north of was cut off by soldiers shooting from the other has been done for generations, since most peo- CONT. ON PAGE 282 280 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 281 Livelihoods: Northern Uganda The Cows Come Home for LRA Massacre Survivors (Left to right) Herdsman Rwakatare has found employment look- ing after the massacre survivors’ cows after peace returned to Northern Uganda. There are many livestock projects supported by the World Bank-financed NUSAF II to help insurgency victims like Doreen Abalo (right). Photos/Laura Walusimbi CONT. FROM PAGE 281 the return to normality after 20 years of war. resettlement scheme, the Lukodi War Survivor Com- munity ‘A’ Cattle Restocking, Bungatira. Herdsman Makes Move Rwakatare came to Lukodi in January 2013, relocating from the southern Ugandan district His initial herd was 15 heads of cattle, by April 2013. from South to North of Kiboga, where they speak Luganda, a dialect No doubt he hopes to grow this kraal as he, against with no linguistic similarities to Luo. “The lan- many odds, embodies the return of normalcy to He stands out like a sore thumb in the crowd of war guage here is too difficult for me to master – I Northern Uganda, which the World Bank-financed survivors in Lukodi. Leaning on his herdsman’s stick speak to them in Kiswahili,” he says. NUSAF II is underwriting. as he carefully studies a heifer in front him, William Rwakatare’s slight physical build and light-skinned Of Rwandese extraction, he was born 42 years complexion separate him from the locals quite dis- ago in the central region district of Nakasongola, tinctly. He does not speak, Acholi-Luo, the local lan- farther farther south in Masaka, and got mar- guage. ried in Kiboga, all in Buganda, where his wife and four children still live. When he came to Lu- Yet he is very much a part of what is happening in kodi, Rwakatare was employed to look after the Northern Uganda – in fact the best advertisement of herds freshly distributed by the NUSAF social 282 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 283 Livelihoods: Northern Uganda NUSAF II Planned Expenditure DFID Cost Category US Dollars (as per plan) Sub Projects 30,450,000 Operations 3,500,000 IGG Operations 1,255,360 Total 35,205,360 IDA Cost Category US Dollars (as per plan) Sub Projects 81,000,000 District Operations 4,035,840 Office of the Prime Minister 13,964,160 (OPM) Operations IGG Operations 1,000,000 Total 100,000,000 Source: NUSAF II Quarterly Progress Report, September 2013 No More River Water in in the rebel insurgency, and two war-enforced evacua- tions of the entire community in the 1980s and 1990s. Settling with proper social amenities like water has Cubu’s Cooking Pots been especially helpful in reviving Cubu. Farther away from the outskirts of the town, out in Lapainat Parish in the countryside, Severino Ochen, the Headmaster of Laminadera Primary School, is equally happy with the Northern Uganda Social Action ‘Water is Life’ goes the popular saying, but not necessar- Fund (NUSAF II), whose water source has bailed out ily so for the waters of River Pece in Gulu. While the river Cubu. waters the farmlands and offers nurture to livestock, its waters have bred disease over the years. So it is a relief for For Laminadera, two classes used to sit under a tree the citizens of one particular community that they do not shade before a new classroom block was constructed. have to drink it any more. Today the 515 pupils of the co-education school are all comfortable indoors under iron sheet roofs and sur- Mrs Judith Onek, a nurse who is resident in Cubu A & B, rounded by brick walls, built in 2011. The one struggle a community of 92 households (average size 7 persons), they still have is teachers’ housing, which is mud-and- has recorded a fall in incidences of typhoid, worms, and wattle, with grass thatch roofing, built through par- diarrhoea ever since the people stopped fetching water ents’ contributions. There is still hope yet. from River Pece 2km away, upon the construction in Oc- tober 2012 of NUSAF project boreholes. Previous to the boreholes, water sources would include a spring and a well (Clockwise from top left) Collecting safe near the river, but these were equally dangerous as the drinking water at a community borehole protective cement foundation was broken, exposing the in Cubu, Gulu; Cooking in a typical rural water to contamination. Acholi homestead; Financial assistance giv- en for various programs under the Northern Mrs Christine Abur, 68, a retired teacher and railway Uganda Social Action Fund II; Students us- worker who has lived in Cubu all her life, has witnessed ing a borehole next to a World Bank-funded enough misery, including the death of community’s most classroom block at Koro Secondary School. famous son, Dr. John Odong of National Medical Stores, Photos/Laura Walusimbi 284 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 285 Livelihoods: Northern Uganda Sisterhood Hammers Away at Community Quarry road, says Dr Anthony Aliro, the NUSAF Desk Laro Cooperative Union, which operates the Laro Quarry Works in Gulu, Officer. NUSAF drew up a $160,000 project that is dominated by women who chisel, carry and load stone for sale. The has widened and raised the stretch to motorable Northern Uganda Social Action Fund has financed the construction of the It is a stretch of only 1.5km, but its impact on the community is standard, ensuring that commercial trucks are Obita-Opwoyomal community road that leads to the quarry. Photos/Lau- able to access the quarry for stone and gravel ra Walusimbi evident in the sheer number of women out on the quarry’s slopes that is a key input in bitumen road construction. breaking, chiseling and carrying stone in a communal project. “I get not only money for food. I have also been At the quarry, the chatter of women’s voices able to pay school fees for three children, one of makes for an exotic mix with the thud-thud-thud who has completed university with a Business de- The Obiya-Opwoyomal Community Road Construc- get heavy haulage vehicles to their site, the Laro sound of hammers at odds with the squealing of gree,” she says proudly, with not a wince, as she tion Project has turned what used to be a ‘panya’ Cooperative Union, which runs Laro Quarry chisels. Beatrice Ajok, 47, is a veteran of 25 years pounds away at stone aggregate. (footpath) that crossed a low wetland into a road Works, approached the Northern Uganda Social at the quarry, which provides a livelihood that to the booming construction market. Struggling to Action Fund (NUSAF II) to help improve the ensures that she will work through the pain. CONT. ON PAGE 289 286 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 287 Livelihoods: Northern Uganda Community Road Offers Access to Cooperative Quarry CONT. FROM PAGE 287 others who are, in effect, the sisterhood. All aspects of the operation – breaking stone, ferrying, chiselling, Beatrice is one of 200 members of the Coop- loading – is by hand. It is not yet mechanized, but that erative Union, a majority of who are women. does not seem to be a particular worry, as access to She says that if any one individual is over- the market was the big concern that the road has now whelmed by work, she will share it out with addressed. The local people prioritized the road that led to a key economic activity as very important to their livelihood. Under NUSAF II, the Obita-Opwoyomal community road construction project has opened up the quarry to critical heavy vehicle transportation. Photo/Laura Walusimbi 288 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 289 Technocrat: Insider’s View INSIGHT T WELVE Emily Twinamasiko (Left) Mechanized and commercialized farming is a key target for NARO. Photo/ World Bank Archives PhDs, ripirit, North Eastern Uganda), which we are struggling with and actually the World Bank has Fisheries, Forests, given us money to develop Nabwini, which is a very important input, because not many people would have put money in a place as remote as Nabwini. There is also Mbarara in the south west Animals and Crops and Rwebitaba in the mid-west. NARO’s institutions have also acquired very in Perfect Mix high quality equipment. The biggest challenge in research is getting up-to-date equipment be- cause they are very expensive, but with World Bank support we are getting quality. So we have no excuse for using obsolete equipment. Kawanda and Namulonge research station have a lot of equipment, as well as the National Ge- Dr. Emily Kabushenga NARO was formed so that there could be collab- The Agricultural, Technology and Agri-business netic Resources Centre and Databank’s appara- oration across the institutions. For example, we Advisory Services (ATAAS) is financed by a com- tus for artificial insemination, which came from Twinamasiko is the Director know that water and crops are interdependent, bination of the Uganda Government, the World World Bank financing. General of the National Agri- so bringing them together would help them sup- Bank and IFAD. port one another to increase productivity. The Bank also financed centers of excellence, culture Research Organisation. So we have had achievements, we have had new through strengthening regionalization of re- She has worked with NARO This was seen as an advantage and to kickstart it crop varieties, but the development of a crop search and extension of technologies: Uganda since its inception in 1994. the World Bank made a big input. The first proj- variety cannot be attributed to a single funder, with cassava and rice; Kenya in dairy; Tanzania ect, the agricultural research and training proj- except maybe the Bill and Melinda Gates Foun- in rice; Ethiopia in wheat. Each country does ect, was broad – it funded very rapid capacity dation that set out from the start and said they what it is best at then we exchange the technol- development because, although we were active shall deliver this and fund a team of scientists, ogy. That is a commendable input by the World in research, the capacity was very low and not train them, and give them money till they de- Bank. The National Agriculture Research Organisation really commensurate with the work. By the time liver. They are very result-oriented. (NARO) has worked with the World Bank for the NARO was formed, livestock had only one PhD Some of the land marks NARO has had in part- last 19 years to strengthen formation of an orga- person; right now we have 10. Forestry did not NARO has increased the number of scientists nership with the World Bank is the fight against nization that coordinates research in all aspects even have Master’s degrees. The Bank also fund- with PhDs, and Masters but also other critical banana bacterial wilt, the development of coffee of agriculture. ed concrete research projects – there were many competencies including short-term training for wilt-resistant varieties, the cassava mosaic, and that were under-funded, others had no money, specific skills. We have really highly-qualified the water hyacinth. Originally Uganda had scattered, autonomous but the Bank’s assistance helped deliver research people we are proud of. institutions like the research stations at Kawa- output based on key indicators. nda and Namulonge, working under the Minis- The Bank has given funds for the establishment try of Agriculture. The forestry institutes were NARO has four main sources of funding: Gov- of zonal agricultural research institutes, in Kac- under another ministry, Forestry, and there was ernment budget allocations, which mostly cover wekano in Kabale, South Western Uganda, and also livestock under the Department of Animal staff salaries; grants from charitable organiza- Abi in West Nile and also financed the conver- Resources. Then there was fisheries under the tions especially the Rockefeller, and the Bill and sion of district farm institutes into research Department of Fisheries, but with the formation Melinda Gates foundations; non-tax revenue institutes: Mukono in the south Lake Victoria of NARO it was agreed that they all needed to like royalties on our technology; and the World crescent, Bulindi in the Lake Albert crescent, work more closely. Bank that has been the main funder in the last Ngeta which serves the mid-northern farming 18 years. The Bank has given the biggest part for systems, Bujinyanya which serves the eastern Photo/NARO research funding, all the others are additional. highlands. There is also Nabwini (in Nakapi- 290 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 291 ANALYTICAL & ADVISORY ACTIVTIES Analytical & Advisory Activities SE CTIO N THIRTE E N A History of Knowledge: 50 Years of Partnership between the Gov- ernment of Uganda and the World Bank. This is a summary of the Analytical and Advisory Activities (AAAs) of the World Bank in Uganda from 1963 to 2013. The AAAs mainly comprise Economic and Sector Work, and Technical Assistance 292 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 293 Early Years: Analytical/Advisory Analytical and Advisory Activities Lower Mortality rates and Higher Life Expectancy Drove Rapid Population Growth (1960-2011) The Economy of Uganda mote better economic integration. At that early stage, the Bank also indicated the importance of develop- ing a strong central bank, at a time when the three East African states still had a single currency board. Nonetheless the Bank still strongly recommended the strengthening of regional integration as a precursor to the formation of the regional central banking structure. Findings: Although the World Bank in Uganda is publicly best known for its • Promising economic outlook based on growing exports lending projects, it has all along carried out the equally crucial Ana- • Over 50% GDP still in the central region lytical and Advisory Activities (AAAs). The resultant growing body • Population growth rate already worrying by 1964 of knowledge has in many cases informed Government’s strategic planning while the related technical assistance helps strengthen the Recommendations: country’s implementation capacity. • More investment in regional integration projects • A strong Central Bank needed • Start taking care of population growth The Economy at Independence Other analytical reports have informed policy formulation at the macro level. ‘The Economy of Uganda’ The first major analytical report on Uganda after the country joined the World Bank was released in No- reports, later termed ‘Current Economic Situation’, were periodic assessments of the national economy. vember 1964, just a year into the country’s membership to the institution. Entitled ‘The Economy of These were later supplemented with public expenditure reviews that analyzed the systems of public ex- Uganda’, the report can be described as the precursor to today’s periodic Country Economic Memoranda penditure to ensure ‘value-for-money’ in public spending. (CEM). There is a discernible consistency in the Bank’s handling of its advisory services to the country, which runs through the 1964 reports to the latest ones of 2013. The 1964 ‘The Economy of Uganda’ was issued during very favorable and promising times for the country, Country Economic Memoranda when Uganda had just been independent for two years and was described as having a favorable financial position and leadership character that made it “creditworthy for the Bank’s lending” and qualifying it for In 2007, two decades after the National Resistance Movement had taken power in Uganda, the World IDA assistance for “larger development effort”. Uganda was then enjoying a surplus budget, positive bal- Bank released the latest Uganda Country Economic Memorandum (CEM). CEMs have been the corner- ance of payments in its external trade and growing exports of the three Cs (Coffee, Cotton, Copper) with stone of periodic knowledge services to Uganda. The first Economic Memorandum was part of a regional increasing significance of tea and animal products. But characteristically, the Bank noticed the looming report of three countries (Uganda, Kenya, Tanzania) in 1968. Even then the CEM pointed to the need for risk of unchecked population growth which, at around 3%, would make positive increase in the quality of diversification of the economy, and the need to raise development expenditure to achieve the targets of life harder though the population then stood at just over seven million people. the 1966-1971 plan. More than 50% of the country’s GDP was being produced in the central region, which was home to 29% The CEM of 1983 formed the basis for the Structural Adjustment Program that started in the mid-1980s, of the population and the phenomenon of lagging areas was already visible. The Bank even at that time while that of 1996 took stock of the outcomes of reforms, and defined the second generation of reforms encouraged more public investment into East African regional infrastructural projects, which would pro- for the country to accelerate broad-based growth. 294 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 295 Macroeconomy: Analytical/Advisory Analytical and Advisory Activities • Improve public infrastructure better and provide for it the requisite budgets • Link education policies to the labor market • Engage Kenyan authorities over increasing efficiency at the port of Mombasa, (Kenya) Public Expenditure Reviews (PERs) Periodic expenditure reviews have been the foundation for policy dialogue with Government on where to spend public resources, how to spend these resources, and monitoring spending for results. They be- came especially critical starting in the early 2000s as Government embarked on budget reforms both at central and local government levels. During the mid-2000s, the PER2004 adopted an integrated ap- proach to address budgetary and financial accountability challenges at all levels of Government. These integrated volumes highlighted the progress that had been achieved by Uganda in strengthening the PFM legal and regulatory framework, but also highlighted the remaining risks, related especially to enforcement of procurement and payroll rules and procedures and independent oversight. In 2007, the PER focused on securing fiscal policy for growth quantified the huge waste of public resources in the Public Sector (e.g. through absenteeism), and became the first of a programmed series. Findings of the 2007 PER: Finding fiscal space for growth would require belt-tightening given: • Uganda needs to double its infrastructure stock in the next 15 years, which requires investments of about $125 million (equivalent to 1.2% of GDP) per annum. • Spending trends over recent period (with over 50% in staff costs), plus the demographic evolu- The Bank of Uganda building in Kampala. In 1964 the World Bank called for a strong cen- Findings: tion which requires increased expenditure in education and health, suggests limited space left for infrastructure. tral bank to buttress the economy. Photo/ Uganda’s past growth was robust, but in 2007 the country was mainly under recovery, propelled by David Sseppuuya strong policy reforms. Future growth needed to move beyond recovery. Key constraints included: • Prudent new concessional borrowing for infrastructure is limited by slow disbursement rates in existing projects • Inadequate infrastructure which stifles production, exports, and jobs Recommendations: • Financial system too shallow to support growth • Shifting composition of spending towards infrastructure for new investments and for mainte- • Persistent perceptions of cronyism and corruption that discourage investment nance; driven by reforms in the Public Sector • Galloping population, which is a time bomb that is ticking underneath • Address causes for slow disbursements in infrastructure projects Recommendations: • Reduce waste and increase efficiency – e.g. in education, 80% of teachers are absent from class at any one time • Behavioral change urgently needed for policy makers to steer public investment where it is need- ed for growth; towards corruption as it kills off public investment; to rebuild accountability in • Conduct value for money studies in all sectors to find areas for improving efficiency of spending the Public Service and in policy making; Private Sector in doing business; to remove waste; for technocrats to become less dogmatic while interpreting ‘Washington Consensus’ policies; for • Improve revenue performance, but without over-taxing key growth sectors Development Partners to also embrace the growth agenda and become intolerant to waste and inefficiency • An investment agenda for growth focusing on high-return public infrastructure especially En- ergy and Transport so as to reduce business costs, increase productivity, encourage job-creating Public Investment Management private investment To enhance the effectiveness of Uganda’s Public Investment Program (PIP), the Bank carried out a • The Finance Sector must style up and do a better job channeling savings to those who need credit study which it released in December 2010 – the ‘Strengthening the Effectiveness of Public Investment in Uganda’. It was meant to assist the Government to direct resources to those investments that • Generate a rapid demographic transition seeking to bring down the high fertility, prioritize girls’ provide the highest economic and social return, in light of the increasing public investments from the education, and pursue a structural economic transformation that creates off-farm employment Government’s own resources, the Development Partners’ and from the anticipated oil revenues. The under the increasing urbanization public investment management processes in place were found not to be adequate to secure value-for- money. The report therefore showed how to enhance PIP by improving the different stages of the PIPs • Address coordination gaps in the Transport – Power sectors and reduce transport costs as they right from conception, quality proposals, budgeting, and all the way through implementation and adversely affect the cost of production in this landlocked, hilly country evaluation. 296 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 297 Macroeconomy: Analytical/Advisory Analytical and Advisory Activities Procurement To say that a poor public procurement environment contributes greatly to corruption and distortion of national development plans is an understatement. The World Bank has been working to promote effi- cient public procurement and has been compiling Country Procurement Assessment Reports. The CPAR of 2001 recommended the abolition of the Central Tender Board; the enactment of procurement policies/ laws; the establishment of a regulatory body; setting up contract committees and procurement units; incorporating procurement plans in sectoral investment programs and the professionalization of procure- ment in the Public Service. Most of these have since become a reality. The 2004 CPAR followed up on the recommendations and the Bank has continually followed up on their adoption and implementation. Population/Demography Workers House, the head office of the National Social Security Fund, The Bank’s Uganda Demography and Economic Growth report of December 2011 makes a detailed analy- in Kampala’s central business dis- sis of the country’s demographic status and demonstrates the main challenge, which lies in the structure trict. The NSSF and the Pension rather than the size of the population. With a fertility of 6.7 children per woman and growing at 3.3% Sector should become major play- per year, Uganda’s population is already one of the youngest and fastest growing in the world. The report ers in the Term Finance Market presents the requisite data and alternative strategies to enable the formulation of policies to bring about a shift through reducing mortality and fertility so as to attain a demographic dividend. This would arise from a situation of getting more people in the working age bracket (assuming low unemployment) so as to reduce the dependency ratio. This would reduce the dependence burden to get more working people generating higher savings, and having more working age women engaging more in economic activities and The Uganda Economic Update spending a less portion of their prime life in mothering activities. The body of knowledge gathered and presented puts the country in position to formulate sound policies and strategies towards developing a population structure that enhances quality of life and faster economic growth. In 2013, the first periodic Uganda Economic Update was released by the World Bank. Entitled ‘Bridges across Borders’, it focused mainly on “Unleashing Uganda’s Regional Trade Potential”, demonstrating how harnessing the potential of expanding regional trade can help the country to renew growth and expand employment opportunities to achieve sustainable growth at a rate fast enough to match the country’s rapid population growth. Fiduciary Process Findings of the first Uganda Economic Update: The Bank’s Country Integrated Fiduciary Assessment Process of 2004 sought to comprehensively address • EAC and COMESA agreements have enabled Uganda to double its exports, but the unexploit- the budgetary, financial accountability, and transparency challenges facing Uganda. While significant ed potential is still bigger progress was made in upgrading and strengthening the legal framework and regulatory environment for public financial management, reducing the risks arising from lack of rules and regulations, it was recom- • Non-Tariff Barriers remain a hindrance to more trade mended that implementing the new rules requires attitudinal change, improved capacity, political will, • Manufacturing still constrained by power and infrastructure deficits and more widespread demand for accountability. The report also recommended that the Auditor General be accorded greater independence and for more capacity for the Public Procurement and Disposal of Pub- • Government uses more external rather than internal sources to fund its fiscal gap lic Assets Authority. • Civil unrest (now in urban areas) still threatens economic performance by disrupting busi- ness Recommendations: • More diversification of the economy through smart use of oil-related revenues Poverty Reduction • Focus on regional production chains driven by trade The Bank’s main business is fighting poverty; the current and ongoing specific anti poverty policies and • Leverage the country’s position to become the land bridge connecting the Great Lakes region measures that have seen poverty halved in a decade and a half and the GDP per capita double in Uganda can be traced to the June 1995 Uganda Challenge of Growth and Poverty Reduction report. It came at • Continue engaging regional neighbors to remove the remaining non-tariff barriers a time when government needed to tackle poverty head-on after the successful completion of economic policy and institutional reforms, and having macroeconomic stability. The Bank identified the remaining constraints as poor infrastructure, weak institutions, shortage of human capital, a weak financial sector, Inclusive Growth - still about transformation and distortions in the investment incentives regime. After two decades of strong, positive economic growth the Bank concluded a study, ‘Promoting Inclusive A Macro Economic Policy Agenda was born and it focused on a tighter fiscal policy, growing of public Growth for Transforming Farms, Human Capital and Economic Geography’. The report issued in February revenue, increasing public savings, managing the borrowing so that Government only sought highly con- 2012 aimed at promoting policies that enable as many people as possible to benefit from the growth. To cessional loans, improving the incentives regime, supporting the growth on non-traditional agricultural this end, it seeks to promote: the transformation of agriculture so that farmers, particularly the smallhold- exports, investing in rural infrastructure, and human capital, that is health and education. ers get easier access to infrastructure, financing, and inputs; transformation of human capital through higher quality primary and post-primary education; enhancing development in all geographical areas and planning for urbanization and changing demographics. CONT. ON PAGE 303 298 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 299 Key Indicators: Analytical/Advisory Analytical and Advisory Activities Growth and Structure of Uganda’s Economy Key Macroeconomic Indicators Economic Activity 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 Unit Indicator 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13p measure Real GDP Growth Rates (%) 10.8 8.4 8.7 7.2 5.9 6.7 3.4 Population Millions 34.1 26.7 27.6 25.6 29.6 30.7 31.8 32.9 Agriculture 0.5 0.1 1.3 2.9 2.4 0.7 2.2 GDP USD 20,973 9,958 11,903 14,440 15,596 15,246 14,791 16,904 Industry 14.7 8.8 5.8 6.5 7.9 2.4 9.6 Per capita income USD 372 431 565 527 497 465 513 615 o/w manufacturing 7.3 5.6 7.3 10.0 6.6 8.0 -1.0 GDP growth % 10.8 8.4 8.7 7.2 5.9 6.7 3.4 5.1 o/w construction 23.2 13.2 10.5 3.7 5.9 7.8 3.2 Services 12.2 8.0 9.7 8.8 8.2 8.4 3.3 Gross Domestic Savings as % of GDP 13.2 16.0 15.9 12.2 12.2 11.3 10.2 13.3 GDP at market prices (%change) 13.4 16.7 15.5 22.9 16.0 11.9 27.6 Gross Investments as % of GDP 21.2 23.6 23.0 23.5 24.2 24.7 25.2 26.5 Shares of GDP (%) 2002 Prices               Inflation (period average) % 6.6 6.8 7.3 14.2 9.4 6.5 23.4 6.2 Agriculture 24.1 22.3 21.4 23.1 23.6 22.7 24.4 Exchange Rate (period average) UGX/USD 1825.10 1777.99 1696.45 1904.70 2029.90 2323.40 2568.83 #REF! Industry 22.8 25.2 25.8 24.7 24.9 25.3 26.4 External Sector                   o/w manufacturing 7.1 7.1 7.3 7.9 7.7 8.6 8.3 Exports - Goods and Services Million USD 1,041.2 1,473.8 2,073.0 2,216.4 2,317.3 2,297.8 2,676.9 2,808.8 o/w construction 11.7 13.1 13.6 12.3 12.7 13.0 13.0 Services 47.2 47.0 46.9 46.4 45.5 46.2 44.3 Imports - Goods and Services Million USD -1,969.0 -2,495.2 -3,510.4 -4,062.2 -4,116.8 -4,671.1 -5,289.7 -5,496.0 FISM and net taxes 5.9 5.6 6.0 5.7 6.0 5.8 4.9 Current Account Balance Million USD -314.5 -342.0 -902.7 -1,258.6 -1,435.0 -1,686.3 -2,070.5 -2,380 Contribution to Real GDP Growth (%)               Balance of Payments (overall bal.) Million USD 198.23 703.85 562.99 -45.70 210.89 -581.22 731.37 83.59 Agriculture 0.1 0.0 0.2 0.5 0.4 0.1 0.4 Foreign Reserves Million USD 1408.3 2090.8 2684.4 2442.0 2384.7 2044.0 2346.1 2,713.8 Industry 3.5 2.4 2.2 1.5 1.6 2.0 0.3 External Debt Million USD 4464.4 1466.8 1687.0 2046.4 2343.4 2904.9 3972.3 4,823.9 o/w manufacturing 0.5 0.4 0.5 0.7 0.5 0.5 -0.1 Foreign Direct Investment Million USD 512.04 718.28 760.58 785.22 692.72 755.07 1065.34 1,309.63 o/w construction 3.0 1.9 1.6 0.6 0.9 1.2 0.3 Services 6.0 4.0 4.8 4.4 4.2 4.4 1.6 Tourism Earnings ‘000 USD 449 590 564 662 805   Shares of GDP by type of expenditure (%)               Monetary Sector                   Final Consumption Expenditure 91.9 89.7 84.7 88.2 89.5 93.5 92.3 Average Deposit Rate % 2.6 2.2 2.2 2.1 2.0 2.6 3.3 #REF! Households 77.8 76.9 73.5 78.1 79.8 83.6 83.6 Average Lending Rate % 16.1 16.9 18.2 18.8 18.2 19.2 #REF! #REF! Government 14.1 12.7 11.2 10.1 9.7 9.8 8.7 Growth in Money Supply % 16.4 17.4 31.1 25.0 31.7 25.9 15.7 #REF! Gross Capital Formation 21.2 23.7 23.0 22.0 23.5 25.0 24.4 Government Finance                   Gross fixed capital formation 21.0 23.4 22.7 21.7 23.2 24.8 24.1 Charges in inventories 0.2 0.2 0.2 0.3 0.2 0.2 0.3 Total Domestic Revenue as % of GDP 12.5 12.6 12.8 12.5 12.2 13.3 13.1 14.5 Net exports -13.1 -13.3 -7.7 -10.1 -12.9 -18.5 -16.7 Tax Revenue as % of GDP 11.8 11.9 12.3 11.8 11.7 12.7 12.5 12.6 Gross domestic saving (% of GDP) 13.2 16.0 15.9 12.2 12.2 11.3 10.2 Non Tax Revenue as % of GDP 0.7 0.7 0.5 0.7 0.6 0.6 0.6 0.6 Public -1.2 -0.8 -0.1 0.9 -0.4 -5.3 -0.3 Total Expenditure as % of GDP 18.6 18.6 17.9 17.3 19.6 22.8 19.4 19.9 Private 14.3 16.8 16.0 11.3 12.6 16.6 10.5 Recurrent Expenditure as % of GDP 12.3 11.5 11.8 10.9 12.3 15.3 11.1 10.3 Source: IMF, UBOS Development Expenditure as % of GDP 6.0 6.1 5.6 5.6 6.6 7.1 6.9 9.4 Grants as % of GDP 5.4 4.5 2.7 2.6 2.5 2.3 2.3 1.9 Fiscal Balance (overall) as % of GDP -0.8 -1.5 -2.4 -2.2 -4.9 -4.3 -3.0 -3.4 Note: fy2012/13 figures are provisional/projections Note: Figures for FY12/13 are provisional/projections. Source: IMF, UBOS 300 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 301 Finance & Trade: Analytical/Advisory Analytical and Advisory Activities Financial Sector - the linchpin for liberalization By 1991, Uganda had embarked on the road to economic liberalization. However, institu- tional weaknesses were enormous, inflation was spiraling and the Government’s monetary measures were having minimal effect on stabilizing the economy. The World Bank’s Financial Sector Review of May 1991 was therefore really a blueprint towards restoration of confi- dence, discipline, and stability in the economy. The review in particular recommended that Bank of Uganda should be guaranteed authority and autonomy in order to perform as a true central bank. It also gave direction on the rationalization of the operations of Uganda Com- mercial Bank and the Cooperative Bank and provided a roadmap for the establishment of a capital market. The Bank supported the groundwork for preparation of the Anti-Money Laundering and Fi- nancing Terrorism laws. This involved studies that assessed the capabilities of relevant agen- cies and institutions, a thorough examination of all related laws, and recommend how their efficacies can be updated. In June 2008, the Bank commissioned a study for delivery to the Bank of Uganda on how to avail retail funds for mortgage lending, and a feasibility study for introducing innovative loan products for low income households combined with low cost house designs for the ur- ban setting. In 2009, the Bank released a major report on the Finance Sector that had taken two years of study to compile, ‘Making Finance Work for Uganda’, with a view to improving access to financial services and improving the supply of Term Finance. Against a background of a gen- erally sound but inefficient Banking Sector, the study identified the constraints to expansion of the sector, especially in the area of agricultural and rural credit. It also tackled the issue of modernization so as to improve remittances and payments systems in an economy that is still too cash-based. Another major component of the study was the Pension Sector, and development of housing finance. Findings: • Commercial banks are doing well for themselves, but are still inefficient and are not sufficiently mobilizing savings and channeling them to lending • Agricultural and rural credit is poor Recommendations: • Banks should to do much better than dealing government treasury bills, but get a bigger portion of the population into the banking system and mobilize more domestic savings for lending • The Pension Sector and the NSSF should become a major player in the term finace market • Housing Finance needs to be developed. Trade and Competitiveness With trade being envisioned to remain an important route out of poverty, the Bank’s analyti- cal work has ranged from identifying constraints to trade and addressing them, to deepen- ing regional integration, developing services, and addressing non-tariff barriers to deepen regional trade, among others. The studies delivered have therefore informed the country’s trade and industrialization policies, and the national competitiveness strategy. In 2006 for instance, the World Bank, under the auspices of the Integrated Framework for Trade-Related Technical Assistance to Least Developed Countries, undertook a diagnostic trade integrated study (DTIS) that concluded that the main factors affecting Uganda’s export competitive advantage were its landlocked status and its natural advantage in agriculture. This study hence identified the key economy-wide issues inhibiting trade to include: High A tea plantation in Western cost and unreliable access to power supply; high transport costs arising from great distance Uganda. Consolidation, diversifi- to sea ports; high costs in trade on account of trade and transport facilitation issues in its cation, and modernization have littoral neighbors; high cost of finance; poor sanitary, phyto-sanitary and other standards been key approaches to a suc- (quality) management; and weak and uncoordinated institutions related to trade. More re- cessful sector. Photo/World Bank cently, in 2012, the DTIS was updated with the aim to take stock of progress in addressing Archives issues highlighted earlier, deepen the analysis in selected areas of new interest; and revising the Action Matrix. 302 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 303 Natural Resources: Analytical/Advisory Analytical and Advisory Activities total population of 16 million) and food crops accounting for 71% of the agricultural output and only a third of this go- ing to the market – the bulk being eaten directly by the ‘farmers’. The resultant memorandum assisted the formulation of the Agriculture Sector Strategy that catered for increasing the traditional exports while introducing diversification into non-traditional exports; improving and adopting better technologies to increase productivity through land use, better breeds, water use, mechanization; government divesting from agricultural production and marketing parastat- als; liberalizing exports and prioritizing research. The country’s Program for the Modernization of Agriculture in the 1990s had seven pillars. The Bank supported these pillars, putting specific emphasis on the research and extension services pillars (whose best known beneficiaries are NARO and NAADS). The Banks’s technical assistance to the Ministry of Agriculture and Animal Industry has helped the authorities to re-prioritize the subsectors that have not received enough attention in the past, enabling it to pro- duce 22 new Investment Plans in Agriculture. Different donors are able to pick out which among the 22 to give funding assistance. Nearly two decades after the Bank issued the Agriculture Sector Memorandum of 1993; it has released the Inclusive Growth Policy Note for Agriculture Extension, which recommended interventions to achieve agricultural commercial- ization as a way towards attaining overall economic structural transformation. These interventions, in particular the smallholder, point towards more pro-rural policies and strategic interventions, better rural infrastructure, a more flex- ible land market, improved access to finance in the rural areas and improved quality of agricultural extension services. Findings: • Over two decades of intervention in the Agriculture Sector have seen major leaps in the non-traditional export crops though benefits have been limited for the food crops whose transaction costs are high • Uganda still has comparative advantage in food production in the region • Commercialization of smallholder farming, which constitutes 97% of agricultural production, is still the most sustainable way towards poverty eradication • Agricultural production has improved despite low support from the Public Sector Recommendations: Harvesting pumpkin in • Smallholder commercialization is more than marketing, and involves transforming all the stages of farming. It Central Uganda. Photo/ can and should be accelerated through investment in infrastructure, more research, more flexible land market and World Bank Archives improvement of the advisory services. Recommendations of the 2012 DTIS Update: • Improve the atmosphere for agri-business • Strengthen Uganda’s export orientation especially in the face of moving into an oil economy. This would require building infrastructure (energy, transportation, ICT), and semi-skilled and skilled manpower, while • Go beyond relying on the country’s natural advantages and create advantages through investment in transport leveraging the potential of regional markets. and institutional development, rural connectivity, more research, and better land use • Build on the success in custom’s reforms that were mainly focused on revenue collection, to improve trade • Focus on pro-rural policies regarding rural/agriculture finance, warehousing, and extension services facilitation. • Pursue export diversification to go beyond goods, and tap into services by addressing gaps in education, regulation, trade policy, and labor mobility. 2. Environment and Natural Resources • Foster deeper regional integration under the principal goal of an open, competitive single market in goods and service, anchoring on some of the common policies like such as the Common External Tariff (CET) and In January 2012, the World Bank handed over a comprehensive analytical report of the country’s Oil Industry devel- the regional NTB monitoring mechanisms. opment strategy options – the Refinery versus Pipeline issue. The analytical report clearly lays out to the Government the implications (risks and benefits) of each choice so as to help decisions over the strategies of developing the sector. Benefits, fiscal revenues, stimuli to other industries, costs, and the risks of both options are tackled in order to inform Government decision. SECTOR WORK The most recent Uganda Country Environmental Analysis CEA, released in April 2012, gives an update of the coun- 1. Agriculture try’s environment and natural resources status. The analytical report quantifies the magnitude and rate at which the country’s ENR assets are being degraded yet most of its income, growth and investment depend on them. It provides the government and stakeholders with the data and cost of the degradation of forests and wetlands, fish depletion, The analytical work within the Agricultural Sector has also resulted into better institutional knowledge, which soil degradation, pollution of surface water and air, factoring in the effects of Climate Change and Corruption, so as to increases the country’s capacity to among others, enhance the farmers’ knowledge. A major analytical work in make ENR sustainable management and taking the required institutional initiatives possible. modern times came in early 1990s in the form of the Agriculture Sector Memorandum (1993) undertaken five years after 1986 political changes. Coming at a time of recovery in most of the country from the ravages of civil In June 2012, the World Bank submitted a rapid situational assessment of the country’s Tourism Sector that was done war, the research contended with increasing agricultural production amid declining productivity (more acreage with support of the British Department for International Development (DfID). The assessment noted that although for similar or less yield per hectare), changing regional and international markets and an overwhelming major- the number of international visitors to the country has grown impressively over the decade (from two hundred thou- ity of the population depending directly on agriculture (with 2.5 million holdings of less than 2 hectares from a sand in 2001 to 1.15 million in 2011), those coming for leisure tourism had not grown significantly to match the 1960s 304 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 305 Education: Analytical/Advisory Analytical and Advisory Activities A class in progress at Laminadera Primary School in Gulu, where a local church, Watoto, sponsors the uniform for the entire Primary 7 candidate class. A lot of work has gone into reforming, im- proving, broadening and deepening education. Photo/Laura Walusimbi levels when the country was a top Africa destination owing to its geographical location, which commands access to big game, primates, birds and culture, all year round. capitation grants. By the end of the decade, it was discernible that expansion and enrollment had grown much faster than quality of the education delivered and, in many cases, quality had actually Findings: deteriorated as teachers were overwhelmed by the numbers. The World Bank made systematic studies including the Public Expenditure Review of 2007 and a special 2008 study on The Efficiency of Public • Majority of visitors still coming for business and conferences Education in Uganda, defining the problems, identifying the specific causes, quantifying the losses • Massive potential in big game, primates, birds and culture underexploited in shillings, and identifying ways of effectively tackling them so as to secure value-for-money for the Government and the children. • Gaps in policy framework, funding, sector leadership and coordination. The original World Bank reports assessing the UPE performance and subsequent ones arising from Recommendations: them have specifically documented the problems, quantified them and given the Government clear • Revamp hotel and tourism training for boosting industry skills analysis of the issues, and provided logical strategic ways forward. The Bank has, for instance, estab- lished and quantified the waste arising out teacher absenteeism – that is 25,000 teachers being absent • Critical evaluation of Ministry of Tourism institutional framework to tackle task of sector from school on any given day when they are supposed to be on duty, the cost of this being equal to revamping 21% of the wages paid for no work done. It is also calculated that ending this absenteeism would re- • Deploy specialists to 13 strategic districts of Jinja, Kanungu, Kisoro, Kabale, Arua, Kasese, duce the need to employ 5,000 teachers! Kabarole, Kampala, Wakiso, Mbale, Kalangala, Masindi, and Gulu • Improve National Parks infrastructure In all, one third of the budgeted resources for primary school education are lost between the Govern- ment and districts, between districts and schools, and within the schools. The effect on the whole • Ensure oil companies mitigate environmental impact of their activities nation is massive because 90% of the primary school children go to public (government) schools. The • Create a robust Tourism Information Management System (TIMS) Bank established that there is “substantial scope” to reduce the waste in Education’s recurrent bud- get; 21% can be saved from not paying wages for no teaching done. The Bank makes clear operational guidelines to measuring efficiency and waste in Education so as to get value-for-money, which would result into educating more learners who would come out with better skills using the same funds or 3. Education less. One unfortunate finding is that the teaching wage bill grows even as the enrollment remains stagnant as has happened in the last few years, and pupil-completion rate is falling. It has also been established that even the resources that are not wasted are not fully or productively used, as can be When Uganda took the bold step and declared Universal Primary Education starting 1997, the main con- easily seen from the dismal performance of the learners during and at the end of their studies: 65% sideration then and for the next decade was to get as many (if not all) the children of school-going age lack literacy and numeracy competence after their Primary Six, which is the second-last class in the into school. This involved constructing new schools, more classrooms in the existing schools and sending 306 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 307 Energy & Health: Analytical/Advisory Analytical and Advisory Activities Power infrastructure maintenance in ru- ral Central Uganda. The World Bank has been involved in the Energy Sector for over 50 years. Photo/Laura Walusimbi primary school system. The reports also give some scenario options like double-shifting Recommendations: as a way of getting more value-for-money from the available facilities. • Institute measures to stem the massive leakages and waste The Bank has subsequently supported numerous analytical activities in the Education • Accountability from teachers Sector. These include recent SABER (Systems Approach for Better Education Results) • Review posting practices and get more teachers to disadvantaged areas initiative whose reports help the Government systematically improve the education system. Recent SABER reports have covered School Finance, Teacher Policies and Early • Implement reforms already recommended by studies to give students more relevant skills Childhood Development. The Bank’s Uganda Business, Technical and Vocational Education and Training Strategy delivered in March 2012 shows the way for the country to develop a sustainable strat- 4. Energy egy to produce a better-skilled and more productive work force and to expand opportu- nities for income generation for a large percentage of the youth. The World Bank has over the decades conducted different studies on Energy in Uganda. In recent Other Bank funded analytical activities in education include reports on funding higher years, the major analytical work has been the Power Sector Implementation Master Plan 2010-2011. education in light of the growing numbers that qualify to enroll at the universities and Upon its release, stakeholder dialogue guided Government to adopt the Master Plan to guide the sec- higher tertiary institutions, exploring the use of loans, grants and rationalization of tor’s development through the Ministry of Energy. It has resulted into, among others, the targeted fees payable. development of 42 identified mini hydro sites for power generation projects, earmarking the best ten to start with and short listing the top three sites for immediate development. The 2009 report on Uganda’s Human Development; Meeting Challenges and Finding Solutions, quantified the sector’s potential in terms of capacity, numbers, funds and Performance Appraisal done in 2012 appraised the entire Energy Sector financials and resulted into identified challenges affecting the quality of education delivered at the higher institu- the phased end of subsidies, which have already greatly reduced. tions. The Accelerated Rural Electrification Study of 2011 is helping the Government develop a policy frame- The 2007 study on ICT in Education assessed the spread, penetration, and effectiveness work for ten years (2011 – 2020) that should result in a successful rural electrification program to of ICTs in the country’s schools, indicating the challenges and potential available. attain the target of universal access to power by 2035. The Tertiary Education Sector Report of 2004 was designed to help Government to bet- The Bank is also helping create the Power Sector Information Centre (in the Ministry of Energy), ter support tertiary education, using well-compiled and analyzed data on the sub-sector which will be the focal point of all information and data relating to the Energy Sector. required reforms. Findings of SABER: • Quality has not matched quantity/expansion of Universal Primary Educa- 5. Health tion • Massive waste in budgetary resources given to education with over 21% of The Bank has done a lot of analytical studies in the Health Sector. In the early 1990s, these studies the wage bill paying for lessons taught; 25,000 teachers not at station on resulted into the formulation of the Uganda Minimum Health Care Package. This is the one that any day informs the development and implementation of all the country’s health delivery systems and strate- • Increasingly less value-for-money being obtained by the country and the pu- gies, defining what can be offered and from where. Subsequently, by using the UMHHCP, government pils from the education expenditure, as more teachers are being employed agencies have been able to effectively review plans, studies and program offers from different sources. while more pupils are dropping out of school The package guided the review of the (Harvard University) Feasibility Study for the National Health 308 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 309 Water/Sanitation: Analytical/Advisory Analytical and Advisory Activities Environmental Sanitation has been a matter of great national concern and concerted action by leaders at all levels helped the country attain just over 50% toilet coverage by the turn of the century. In 2001, a Memorandum of Understanding was signed by the three key ministries for Water, Health and Education to promote sanitation. The World Bank has been giving technical assistance to the process by conducting several studies and facilitating several workshops for stakeholders in the sector which have resulted in more awareness campaigns including the national hand washing campaign. Finally the Bank’s Uganda En- vironmental Sanitation - Addressing Financial and Institutional Challenges - report was released in Feb- ruary 2010. It shows the way towards reforming the 2001 MOU and address institutional and political- economic factors in the sector. It also deals with municipal solid waste management and urban drainage, with specific focus on the capital city of Kampala. The Bank’s analytical work and technical assistance has helped strengthen the sanitation coalition and led to the unprecedented creation of a designated budget line for sanitation. Another resultant groundbreaking initiative has been the commercialization of solid waste collection and transportation. Involvement of the Private Sector in sanitation waste management has created a new sub-sector employing increasing numbers of new young entrepreneurs. Other ongoing Bank technical assistance projects include ‘Strengthening Capacity for Supply and De- mand Creation for Improved Sanitation that should be ready in 2014 and will support the Government to develop tools and guidelines for demand creation using behavioral change communication; support the development of an innovative business model to strengthen the supply chain for improved sanita- tion products and services, thereby improving the lives of the people by getting access to clean water and sanitary services. The ‘Strengthening the Domestic Private Sector’ concludes at the end of 2014 and will strengthen the Domestic Private Sector, which is used by Government for service delivery. With the increased capacity of Residents pumping water in Gulu. Insurance, which has already been discussed by Cabinet. the Domestic Private Sector Participation (DPSP), Government will scale up water supply and sanitation Boreholes are a key water supply services for poor people. source in rural Uganda. Photo/ The Bank also did the Fiscal Dimension of HIV/Aids in Botswana, South Africa, Swaziland and Uganda Laura Walusimbi (2012) which tackles the financial aspects, and informs strategies for treating the disease that is still The DPSP in small towns which will be ready at the end of 2015 and will strengthen the management bound to be around for a while. framework of the DPSP in small towns in order to enable Government to scale up improved water supply and sanitation services for poor people leading to the increased use of improved water supply and sanita- The Public Expenditure Review done by the World Bank in the Health Sector in 2008 helped to analytically tion services for people. unpack the health budget for the Government, revealing underfunded non-salary components, control- lable costs at ministry headquarters, showing increasing recurrent expenditures hidden in development The ‘Strengthening the Enabling Environment to Scale up Sanitation in Uganda’ will be ready mid-2015 budget and identifying possible savings. The report was a valuable tool for helping the authorities design a and is to support Government improve programmatic conditions (enabling environment) for scale up and program of public expenditure measures to reduce waste and enhance efficiency to improve service deliv- sustainability of rural sanitation and hygiene for poor people. ery in the Health Sector. It also tackled staff performance, absenteeism, and drug leakages to help secure value-for-money for the public. The PER also dealt with the optimal integration of off-budget donor funds Findings: provided for the Health Sector. • Uganda is no longer water secure. Projections show that by 2030, the country could be facing From 2011 to 2013, the Bank conducted a study that resulted in the Situational Analysis Report on the a water crisis Medical Human Resources situation of the Health Sector in Uganda, which is helping inform the optimal • A rising population, better living conditions with more consumer demand for piped water, utilization of the available skilled manpower. and farmers’ rising aspirations with more smallholder farmers making their own schemes to draw irrigation water (inefficiently) from the water bodies are all contributing to a possible 6. Water and Sanitation water stress situation that could catch up with Uganda in the near future • More wetlands are being converted to unsustainable cultivation practices with the Govern- ment showing little capacity to regulate this For a long time, it has been assumed that Uganda has a comfortably sufficient water supply for consump- • Anti-environmental activities like deforestation on the increase tion and development needs. However, studies have progressively shown that the country faces increasing risk of water stress, which would reach crisis levels around 2030 – a mere 17 years away. The World Bank has made comprehensive research in the country’s water resources and recently came out with the Uganda Recommendation: Water Country Assistance Strategy, which is assisting the Government to identify priority actions for • Integrate planning for water resources and environmental management building on successful outcomes, tackling challenges, and exploiting opportunities in the country’s Water Sector. The Water for Agricultural Production (WfAP) Technical Assistance report submitted in 2011 helps set- 7. Transport ting strategic agenda for development and management of agricultural water; serving both Ministry of Agriculture and Animal Industry with the Ministry of Water and Environment; helps show the way to- The Bank has for long been providing technical assistance and analytical advisory work in the country’s wards integration of agriculture water development within agricultural and water resources management Transport Sector. As far back as 1983, the Bank compiled Uganda’s Transport Sector Memorandum when framework; and helps define role of government in WfAP and assigning tasks between relevant agencies. the sector was dominated by parastatal transport companies – from aviation, railway, buses and haulage. 310 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 311 Private Sector: Analytical/Advisory Analytical and Advisory Activities Big differences in the Jobs Ugandans do in Rural and Urban Areas Uganda’s Youth (15-34 Year Olds) are Occupying a Higher Proportion of Jobs and Taking Wages in Most Sectors Source: Uganda Bureau of Statistics, National Household Survey 2009/10 Source: Uganda Bureau of Statistics, National Household Survey 2009/10 The main objective of the study then was to take stock of the situation, identify and recommend solutions financial institutions. to the main problems faced by the sector, which the Bank bluntly described as being “in disarray”. When in April 2009 the Bank released its comprehensive Investment Climate Assessment (ICA) on Today, a significant transformation, which the Bank has supported deeply, has already taken place, includ- Uganda, it went deeper and into the remaining issues raised in previous ICAs and the Country Economic ing the privatization of much of transport business. More recent technical assistance by the Bank has Memorandum of 2007. The 2009 ICA made an updated appraisal of the still outstanding obstacles to in- been over development of the transport infrastructure, policies and laws and the birth and maturing of vestment regarding Labor productivity, Infrastructure, Power, access to Finance, Informality, Technology institutions like the Uganda National Roads Authority and the Road Fund. and Regulation, coming up with updated, practical recommendations to tackle them. The Bank has also been involved significantly in work for integrating the transport networks and policies of the countries in the region. 9. Local Government 8. Private Sector The entrenchment of the present form of the Local Government system under the process of decentral- ization has taken some two decades to develop. And in the process, new major units of Government in the form of additional districts being created have kept coming up. This devolution of powers involv- Since the Government started embracing pro-Private Sector economic reforms in the late 1980s and early ing political, administrative, and fiscal reforms also came with attendant problems of accountability. The 1990s, the Bank has been carrying out constant extensive studies in the country’s business atmosphere. World Bank’s June 2009 report on Local Government Discretion and Accountability – Application of Local There has been ongoing research, analysis and consultations with the Government, resulting into a steadi- Governance Framework, makes a diagnostic evaluation of the whole process thus far and identifies and ly improving investment climate. Issues that were major problems in the 1990s are declining in number analyses the weaknesses in the local governance processes and how they need to be addressed. and magnitude. For example, in the early 1990s the regulatory framework ranked very high on obstacles to growth and investment, but following continuous progressive reforms, it is now nearer to the bottom It found that some confusion remains in the roles and responsibilities amongst decentralized bodies and of problems in the business atmosphere. The quality and absence of infrastructure was also among the top actors, and this adversely affects accountability structures. The Bank report also identifies some services impediments in the 1990s, and still is a major factor militating against investment, but major improve- (like Health) whose effective delivery is sometimes susceptible to suffering under decentralization unless ments have been registered. Electricity supply reliability was also a major issue, and still was at the time operational changes are instituted in the local government units. of the last reviews, but recent increase in generation and improvement in transmission capacity are likely to return positively different findings in the next findings. 10. Northern Uganda By the time a major survey was conducted by the Bank in 2003 to 2004, focusing on hundreds of firms in Commercial Agriculture, Construction, Manufacturing and Tourism, major problems were found to Public Expenditure Reviews are usually done at a national level. However the Bank has also undertaken include related to low labor productivity that compares poorly with fast growing economies and even a Northern Uganda specific review not just because of the region’s two decade-long problems arising out against neighboring Kenya. The fact that labor costs in Uganda remained among the lowest in the world in of civil strife. Because of these problems, Northern Uganda has been a target of multiple funding sources 2004, its low productivity made labor in the country a disincentive to investment. The health of Uganda’s and there is a need to get a complete picture of the region’s public finances. This becomes pertinent from labor force was also found to be relatively poor, with high costs of treating employees. Electricity remained the clear paradox that despite the significant amount of funds destined to Northern Uganda, the region a big problem and another problem described as “informal payments” (bribes/corruption) that companies remains the poorest of the country, whose people have the lowest standard of living (and highest popula- need to keep paying out remained. The Bank’s recommendations sought to enhance the creation of a tion growth). The first PER on Northern Uganda was done in 2006-2007, and found the resources inflow framework for sustainable growth and structural transformation, ensuring good governance and security, for that year to be one trillion shillings, of which 65 % was channeled through the National Budget. The and increasing the ability of the poor to raise their incomes and increase their quality of life. The Bank Northern Uganda PER dissected several mismatches between expenditures on wage versus non-wage, explicitly called for the tackling of corruption, the improvement of tax administration, and addressing conditional and non-conditional grants, and effects of the multiplication of districts, and such similar the high interest rates on Treasury Bills, which were “crowding out” on lending for the Private Sector by issues of a national character, which, however, have more negative implications in the northern region 312 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 313 Urban Devt: Analytical/Advisory 1960-2011 : South Korea’s urbanization trends reflect its fast-paced development, while Uganda lags A typical urban setting in Uganda. Urban- ization is still very low, but should increase with development. Photo/Laura Walusimbi Source: World Bank Development Indicators/Google Gapminder because of the region’s weaknesses. The report identifies the weaknesses and recommends specific further follow-up research so that reliable recommendations can be made subsequently. Recommendations: The strategy for efficient urbanization has five pillars: 11. Urban Development 1. Increase economic density – this will require to develop a credible system for documenting and valuing land, along with measures to improve urban local body finances to acquire land and pay The Bank has been involved is several studies on Uganda’s urban development, including as a key for infrastructure in order to use land more flexibly. member of the Cities Alliance, which has done studies like Transforming Settlements of the Urban Poor in Uganda. However, the big ongoing one is the Structural Framework for Reform. Besides being 2. Equalize access and quality of social services in both rural and urban areas. a lender, the Bank has given Technical Assistance that has enabled Kampala City Council Authority 3. Reduce congestion costs within urban areas by coordinating urban transport systems and land develop institutionally to achieve higher revenues, deliver services better, and plan for infrastructural use planning. development effectively. 4. Develop Kampala’s role as a regional city by improving investments for main corridors joining From a macro perspective, the most recent urban review was undertaken under the auspices of the Uganda to its neighbors, through better prioritization of investments in-country, and ensuring ‘Promoting Inclusive Growth’ AAA work. Highlighting that Uganda’s future growth will by necessity effective regulation of the transport system. be more urban-based, this work underscored the importance of planning for a more efficient urban- ization process. 5. Improve living conditions in urban areas, especially for the increasing workers flocking the cities Findings: • Uganda’s level of urbanization (13% UN, but 25% agglomeration index) is low, but will acceler- ate as the country develops. Achieving the full benefits of urbanization requires exploiting the 12. Public Service economies of scale and agglomeration and increasing substitution between land and non-land assets through more efficient markets. The cross-cutting Public Service Sector has benefitted from numerous studies by the World Bank, most of them related to other sectors that it services. And like Agriculture, the line between lend- • Two exogenous factors to influence urbanization are: (i) The changing climate and its impact on ing projects and knowledge in Public Service is thin, as the output of lending projects is on many rain-fed agriculture, which will influence the prospects of small towns that serve as interlocutors occasions knowledge itself for enhancing performance in all other sectors. Some specific knowledge with the rural economy; and (ii) deeper regional integration, which will increase prospects for the outputs include the Political Economy of the Environment and Natural Resources Sector, the Gover- country’s largest metropolis (Kampala), but place it in direct competition with other metropo- nance Assessment of the ENR sector and the Governance and Political Economy Risk Assessment in lises in the region. the Transport Sector. 314 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 315 Technocrat: Insider’s View INS IGHT T HIRTEEN Charles Kwesiga Industrialization is the Future; the Future is Industrialization Prof. Charles Kwesiga is the Executive Director of the Ugan- da Industrial Research Institute (UIRI), the Government’s lead agency for industrialization. Q: Where has the biggest impact been? sought your input directly? A miniature globe floating in mid-air on the edge of Prof. Kwesiga’s desk in Prof. Kwesiga has overseen a magnetic field that simulates that UIRI’s mandate is to catalyze industrialization. Yes they do it to some degree, but of course you know UIRI’s portion of the imple- The development of enterprises, the hand-hold- we operate under a ministry of Trade and Industry, of the Earth. It signals Uganda’s scien- tific intent. Photo/David Sseppuuya mentation of the Millennium ing of start-up companies till they become self- through whom they would liaise. sustainable enterprises. The process of develop- Science Initiative (MSI), a $30 ing such enterprises is not possible unless you Q: Do you have any international partner- million World Bank loan to sup- have the money, the equipment and skills. This is ships? port scientific development a more tangible impact - the Industrial Resource Center - where we have established data bases on When support like what we have been getting raises and help increase the number the specific status of industries in this country. your profile, it may not have been from the direct and quality of scientists pro- That information is valuable for researchers and support of MSI but definitely we have raised our pro- even investors who are making decisions. That duced by Uganda’s universi- file to a significant degree. For example in 2012 we was through direct support from the World Bank. were selected as a center of excellence for the East ties and research centers, and African Community. If it hadn’t been for the signifi- boost the country’s scientific Q: What if the World Bank had not cant enhancement of services and infrastructure, we and technological productivity come in? would not be recognized as such. in Industrial, Agricultural and We would still be looking for funders because of Also at higher levels, our involvement with the other sectors. $4 million of the limited ability, capacity, and definitely limited World Association of Industrial and Technological prospects for expansion of our services. UIRI has Research Organizations has seen me being elected loan was dedicated to UIRI. met some significant challenges because of inad- as First Vice President. For Uganda to achieve that equate funding. For example in March 2006 we you have to be a visible, viable and recognized insti- Photo/David Sseppuuya had a work force of about 22 workers. Without tution. I don’t think we would have gained that if we suggesting that MSI was not responsible for ex- hadn’t got contributions from MSI. pansion, it has contributed to it. Today, I can say Q: When was the planning stage of MSI? ity building. MSI had other aspects, but the equipped analytical laboratories. When you UIRI has a work force of 210 people; because of have well-equipped labs and a robust modern main aim of working with us was to enhance MSI support we demonstrated our ability to con- engineering workshop, then it becomes pos- It dates back to about 2004-2005. First of all tribute to the industrialization of Uganda and sible to develop technical skills. If there is one it had major impact but the involvement of capacity so that we deliver on our mandate. as a result Government has also increased their specific thing I want to celebrate for the col- UIRI in that part of MSI was to support UIRI budgetary support. We now get close to shs13b Q: What has the World Bank done? laboration is that they enhanced our techni- and the Uganda National Council for Science ($5.2 million) a year in budgetary support. cal capacity. So now we can do a lot of analysis and Technology as institutions that are in- volved directly in the promotion of science, They have made it possible for us to have and even make products in our workshops. Q: Has the National Planning Authority technology transfer aspect and skills capac- a modern engineering workshop and well- 316 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 317 WORLD BANK AND UGANDA A Snapshot of the Partnership SE CTIO N F O URTEE N Uganda: World Bank Lending by Volume (Millions of US Dollars) Source: World Bank Numerous projects have been implemented during the 50 years of partnership, ranging from large infrastructure development proj- ects to support to small holder tea farmers. The success of these projects has been made possible due to the close and trusted relationship between the Government and the Bank’s representa- tives in Uganda 318 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 319 World Bank Lending to Uganda The World Bank and Uganda Today Uganda Country Assistance Strategy (2011 - 2015) The Country Assistance Strategy (CAS) for the • Strengthen Human Capital Development jobs (including developing the oil-producing re- period from July 1, 2011, to June 30, 2015, through: (i) improved access to and quality gion as a growth pole). was discussed by the World Bank Board of Ex- of primary and post-primary education; and ecutive Directors on May 25, 2010. The Strat- (ii) strengthened health care delivery. Second, the Report recommended more selec- egy is anchored in the Government of Uganda’s tive use of development policy lending. This was 2011–2015 National Development Plan (NDP), • Improve Good Governance and Value for a joint decision of the Government and the Bank and aligned with the Africa Regional Strategy of Money through strengthened accountabil- in view of the reduced momentum of certain March 2011 and Uganda’s Vision 2040. The CAS ity. policy reforms and institutional weaknesses in (2011 - 2015) focuses on four strategic objec- public sector governance. The Bank should in- tives: The CAS Progress Report from July 2013 found stead use the development policy lending instru- that the priorities in the CAS remained valid, ment in exceptional cases to support governance • Promote Inclusive and Sustainable Econom- and proposed three key adjustments in view of or sectoral reforms. ic Growth through: (i) improved conditions the changing context to help restore the path for for private sector growth; (ii) improved in- faster economic growth and improve the gover- Third, the Report recommended to broaden sup- terconnectivity for regional integration; (iii) nance environment. port to Uganda’s governance efforts, while rec- increased productivity and commercializa- ognizing the limits of technical interventions. tion of agriculture; and (iv) increased effi- First, the report recommended to place more This would imply support to both supply-side ciency and sustainability of natural resource emphasis on transformational operations and and demand-side programs and adoption of a management. related investments. This should entail aligning three-pronged approach: (a) Support for public IDA’s support with the goals of ending extreme finance and procurement management systems • Enhance Public Infrastructure through: (i) poverty and promoting shared prosperity, with and processes (system-wide as well as protecting increased access to electricity; (ii) improved more emphasis on infrastructure (hydro-power IDA funds and achieving value for money); (b) access to and quality of roads; (iii) increased generation, and rehabilitation of major trans- Strengthening country oversight institutions; access to andquality of water and sanitation port corridors), agricultural productivity (in- and (c) Promoting accountability mechanisms services; and (iv) improved management cluding agro-based industries) and access to at the local level to deliver better services. and delivery of urban services. markets, skills development that leads to more World Bank Projects in Uganda List includes major Bank-supported projects. Additional information including all project documents can be found on: http://www.worldbank.org/projects Apr 20, 1989 Economic Recovery Credit 25.00 Jan 14, 1994 Finance Sector Adjustment 1.10 Approval Date Project Title US$, m Mar 13, 1984 Highway Project III 58.00 (Supplemental) March 29, 1961 Electric Power Development Project 8.40 May 15, 1984 Reconstruction Credit Project III 50.00 Feb 1, 1990 Program for Alleviation of Poverty 28.00 Mar 17, 1994 Small Towns Water and Sanitation 42.30 and the Social Costs of Adjustment Project April 21, 1967 Education Project 10.00 July 19, 1984 Water Supply & Sanitation Rehabilita- 28.00 tion Project Feb 1, 1990 Economic Recovery Credit Project II 125.00 Mar 24, 1994 Transport Rehabilitation Project 75.00 July 28, 1967 Roads Project 5.00 Jan 8, 1985 Agricultural Development Project 10.00 Apr 12, 1990 Water Supply Project II 60.00 Apr 12, 1994 Sexually Transmitted Infections Proj- 50.00 Sept 15, 1967 Tea Project 3.40 ect Mar 19, 1985 Petroleum Project 5.10 Sept 11, 1990 Livestock Services Project 21.00 Sept 24, 1968 Beef Ranching Project 3.00 May 10, 1994 Cotton Subsector Development Proj- 14.00 Mar 19, 1985 Power Project II 28.80 Dec 13, 1990 Agricultural Sector Adjustment Credit 100.00 ect Sept 23, 1969 Roads Project II 11.60 Project May 21, 1987 Highway Project IV 18.00 May 10, 1994 Structural Adjustment Credit Project 80.00 July 21, 1970 Tobacco Project 4.00 Jan 22, 1991 Urban Project 28.70 II June 17, 1987 Forestry Rehabilitation Project 13.00 June 17, 1971 Education Project II 7.30 June 13, 1991 Power Project III 125.00 Conservation of the Bwindi Impen- Sept 15, 1987 Economic Recovery Program Project 65.00 Jan 24, 1995 etrable National Park and the Mgah- 4.00 Feb 19, 1980 Reconstruction Credit Project 72.50 Dec 3, 1991 Enterprise Development Project 65.60 inga Gorilla National Park Project Jan 12, 1988 Southwest Region Agricultural Reha- 10.00 Dec 2, 1980 Technical Assistance Project 8.00 bilitation Project Dec 3, 1991 Structural Adjustment Credit Project 125.00 Feb 7, 1995 District Health Project 45.00 Mar 17, 1981 Water Supply Engineering Project 9.00 Mar 31, 1988 Sugar Rehabilitation Project 24.90 May 5, 1992 Northern Reconstruction 71.20 June 1, 1995 Institutional Capacity Building Project 36.40 Apr 13, 1982 Phosphate Engineering Project 4.00 June 23, 1988 Health Project 42.50 Aug 4, 1992 Economic and Financial Management 29.00 Sept 14, 1995 Environmental Management and Ca- 11.80 Project pacity Building May 18, 1982 Industrial Rehabilitation Project 35.00 Aug 23, 1988 Technical Assistance Project III 18.00 Sept 29, 1992 Agricultural Extension 15.80 Dec 14, 1995 Private Sector Competitiveness Proj- 12.30 May 25, 1982 Reconstruction Program Project II 70.00 Nov 8, 1988 Public Enterprises Project 15.00 ect Dec 15, 1992 Agricultural Research and Training 25.04 Feb 22, 1983 Education Project III 32.00 Nov 15, 1988 Education Project IV 22.00 Project Apr 16, 1996 Agricultural Sector Management 17.90 Project Feb 24, 1983 Agriculture Rehabilitation Project 70.00 Feb 21, 1989 Railway Project 7.00 May 13, 1993 Primary Education and Teacher Devel- 52.60 opment Project May 17, 1983 Posts and Telecommunications Project 22.00 Telecommunications Rehabilitation July 30, 1996 Lake Victoria Environment Project 9.80 Mar 14, 1989 Project II 52.30 May 20, 1993 Financial Sector Adjustment Credit 100.00 (GEF) Dec 22, 1983 Technical Assistance Project II 15.00 Project 320 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 321 World Bank Lending to Uganda July 30, 1996 Lake Victoria Environment Project 12.10 July 9, 2002 Protected Areas Management and 27.00 Sept 27, 2007 Kakira Bagasse Cogen (Carbon Offset) 3.08 June 22, 2010 Uganda Sustainable Land Manage- 7.20 (IDA) Sustainable Use Project ment Country Program Oct 22, 2007 Reproductive Health Vouchers in 4.30 June 6, 1997 Structural Adjustment Credit Project 125.00 July 23, 2002 Northern Uganda Social Action Fund 100.00 Western Uganda June 22, 2010 Agricultural Technology and Agribusi- 120.00 III Project ness Advisory Services Nov 6, 2007 Kampala Institutional and Infrastruc- 33.60 Sept 9, 1997 Road Sector Institutional Support 30.00 July 23, 2002 Poverty Reduction Support Credit II 150.00 ture Development Project Aug 24, 2010 Transforming the Settlements of the 2.67 Technical Assistance Project Urban Poor in Uganda May 29, 2003 Local Government Development 125.00 Dec 18, 2007 Local Government Management and 55.00 Mar 24, 1998 Nutrition Child Development 34.00 Project II Services Delivery Project Sept 30, 2010 Poverty Reduction Support Credit VIII 100.00 Mar 24, 1998 Education Sector Adjustment Opera- 80.00 Sept 9, 2003 Poverty Reduction Support Credit III 150.00 May 1, 2008 OBA in Kampala - Water Connections 3.00 Dec 1, 2010 Support to Firm Data Generation 1.71 tion for the Poor Project Nov 4, 2003 Economic and Financial Management 14.60 May 7, 1998 El Nino Emergency Road Repair Proj- 27.60 Project III (Supplemental) May 6, 2008 Poverty Reduction Support Credit VII 200.00 June 16, 2011 Transport Sector Project (Additional 75.00 ect Financing) Dec 9, 2003 Sustainable Management of Mineral 25.00 June 19, 2008 Preparedness and Control of Avian 10.00 Institutional Capacity Building for Resources Project Influenza June 30, 2011 Uganda - Financial Sector DPL 50.00 July 9, 1998 Protected Areas Management and 12.40 Sustainable Use Project Repatriation, Rehabilitation, Resettl- July 28, 2008 Emergency Demobilization and Rein- 8.25 June 30, 2011 Electricity Sector Development Proj- 120.00 Aug 2, 2004 ment and Reintegration of Reporters 4.20 tegration Project ect May 6, 1999 Nakivubo Channel Rehabilitation 22.40 in Uganda Project Environmental Management and Oct 3, 2011 Support for the Uganda Petroleum 1.18 Sept 2, 2004 Private Sector Competitiveness II 70.00 Sept 4, 2008 Capacity Building II (Additional 15.00 Institute May 6, 1999 Agricultural Resource and Training II 26.00 Finance) Sept 2, 2004 Road Development Program III 107.60 Feb 28, 2012 Poverty Reduction Support Credit IX 100.00 May 27, 1999 Financial Markets Assistance Project 13.00 Sept 23, 2008 Sustainable Management of Mineral 5.00 Sept 2, 2004 Poverty Reduction Support Credit IV 150.00 Resources Additional Financing June 26, 2012 Water Management and Development 135.00 June 29, 1999 Road Development Project 90.98 Project Jan 17, 2006 Poverty Reduction Support Credit V 135.00 Mar 31, 2009 Post Primary Education and Training 150.00 Nov 30, 1999 Economic and Financial Management 34.04 Program Oct 4, 2012 An Innovative, Integrated Approach to 3.00 Project II May 25, 2006 Millennium Science Initiative 30.00 Enhance Smallholder Family Nutrition Apr 6, 2009 Energy for Rural Transformation APL-2 9.00 Nov 30, 1999 Local Government Development 80.90 June 20, 2006 Uganda Public Service Performance 70.00 (GEF) Mar 28, 2013 Support to Municipal Infrastructure 150.00 Program Enhancement Program Development Program Apr 6, 2009 Energy for Rural Transformation APL-2 75.00 Jan 20, 2000 Power Project III (Supplemental) 33.00 Feb 7, 2007 Uganda Water Small Towns and RGCs 3.20 May 9, 2013 Competitiveness and Enterprise De- 100.00 May 28, 2009 Northern Uganda Social Action Fund 100.00 velopment Project Aug 24, 2000 Privatization and Utility Sector Re- 48.50 Apr 26, 2007 Poverty Reduction Support Credit VI 125.00 Project II form May 22, 2013 Energy for Rural Transformation IPF II 12.00 Apr 26, 2007 Uganda Power Sector Development 300.00 July 15, 2009 Sustainable Environment and Carbon 8.40 (Additional Financing) Dec 22, 2000 Structural Adjustment Credit Project 25.40 Project Finance III (Supplemental) The skyline of part of Kampala’s central Apr 26, 2007 Private Power Generation (Bujagali) 115.00 Dec 10, 2009 Transport Sector Development Project 190.00 business district. Photo/David Sseppuuya Jan 18, 2001 HIV/AIDS Control Project 47.50 Project Apr 15, 2010 Kampala Solid Waste Project 2.08 Feb 15, 2001 National Agricultural Advisory Ser- 45.00 Aug 2, 2007 Agricultural Research and Technology 12.00 vices Project II (Additional Financing) May 25, 2010 Uganda Health Systems Strengthening 130.00 Project Mar 20, 2001 Environmental Management and Ca- 22.00 pacity Building Project II Apr 3, 2001 Regional Trade Facilitation Project 20.00 May 31, 2001 Poverty Reduction Support Credit 150.00 July 3, 2001 Power Project IV 62.00 July 3, 2001 Road Development Program II 64.52 Dec 13, 2001 Energy for Rural Transformation 12.12 Project Dec 13, 2001 Energy for Rural Transformation 49.15 Project Decentralized Service Delivery: A Mar 26, 2002 Makerere University Training Pilot 5.00 Project July 9, 2002 Lake Victoria Environmental Manage- 4.50 ment Project (Supplemental) July 9, 2002 Protected Areas Management and 8.00 Sustainable Use (GEF) 322 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 323 World Bank: Country Representatives The Importance of Local Presence No two World Bank projects are alike and each project is tailored to specific country conditions and circumstanc- es. Successful design as well as implementation of proj- ects is therefore relying on local presence in the country. The World Bank has offices in more than 100 member countries spread across the world, with 48 representations in Africa. In a nutshell, the Bank’s main business is to lend Offices together with experts from headquarters to country governments for development proj- in Washington. The Country Offices are thereby Hillegonda Goris: 1980 – 1984 Brian Falconer: 1994 - 1997 Grace M. Yabrudy: 2003 – 2008 ects. The criteria for lending is that every Bank- linking the Bank’s global technical expertise and assisted project must contribute to a country’s experience with local needs and challenges. development objectives and be economically, technically, and financially sound. This involves a continuous dialogue between the Government and the Country Office, which is The Bank always works to deepen the impact led by Resident Representatives. Since 1980, the of its development mission in countries and to World Bank has had nine different Representa- complement the efforts of other key local part- tives in Uganda. ners, including governments and communities, the private sector, civil society, think tanks, and others. Projects put strong emphasis on increas- ing regional and national competitiveness, cre- ating more jobs and opportunities for families, while reducing vulnerability and improving re- silience. The financing of projects is often underpinned by the Bank’s analytical work, which helps in- forming countries’ own investments. This is guided by the Bank’s specialists in the Country Grant Slade: 1985 - 1990 Randolph Harris: 1998 – 2001 Kundhavi Kadiresan: 2008 – 2011 Seung Hong Choi: 1990 - 1993 Robert R. Blake: 2002 – 2003 Ahmadou Moustapha Ndiaye: 2012 to date 324 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 325 Uganda: Finance Ministers Good Relations With Ministers of Finance Lawrence Mayanja Brig. Moses Ali: ***President Milton Obote: Gerald Sendaula: Kyompitira Sebalu: 1961 1976 - 1977 1981 - 1985 May 1998 - Feb 2005 When the then President of the World Bank Group, Robert B. Zoel- lick, visited Uganda in August 2009, he paid respectful tribute to his host, the then incumbent Minister of Finance, Planning and Economic Development, Ms Syda Bumba. He thanked her for re- ceiving him at the airport, for accompanying him throughout his visit, and for hosting a lunch in his honor. C.G.F.F. Melmoth: Jumba Masagazi: Eng. Abraham Waliggo: Dr. Ezra Suruma: 1961 1977 – 1979 1985 - 1986 Feb 2005 - Feb 2009 All this before he appreciated the business end Partners, and between them the ministers have, of his stay that discussed the serious matters of especially in the last two decades, emphasized opportunities and constraints to Private Sector the imperatives of Electricity, Roads, Railways, development and trade, the Government’s plans Commercialization of Agriculture, Vocational to promote growth and economic transforma- Training, the Private Sector, and Health Infra- tion, and a pledge to develop new and relevant structure, among others, as being central to the financial products and to support improved ac- country’s development. cess to education, particularly technical and vo- cational training, in order to provide a relevant The World Bank has always emphasized that the and skilled workforce. relationship is maintained through its principle channels of technical assistance or financing, Mutual respect has been the byword for relations and has been a listening partner. Amos Sempa: Sam Sebagereka: Prof. Ponsiano Mulema: Syda Bbumba: between the World Bank Group in Washington, 1979 Jan - Nov 1986 Feb 2009 - June 2011 DC, and the Minister of Finance in Kampala. Following are the men and women who have 1962 - 1966 held this key Cabinet portfolio from the 1961 Since 1961 Uganda has had 19 ministers in this self-government administration to the various vital Government department, and each one of post-independence governments. them, to a smaller or greater degree depending on the political circumstances, has worked with the World Bank on a daily basis. The Minister of Finance is the key person who articulates Uganda’s priorities to Development Lawrence Kalule Ssettaala: Jack Sentongo: Dr. Crispus Kiyonga: Maria Kiwanuka: 1966 - 1971 1979 – 1980 Nov 1986 - March 1992 June 2011 to date *1973 - No substantive minister - (J. Geria acted to read Budget) **1974 - No substantive minister - (Central Bank Governor Semyano MM Kiyingi acted to read Budget) ***1981-85 Assisted by Minister of State Henry Makmot and Ambassador Extraordinaire Emmanuel Bwayo Lawrence Mayanja Jehoash Mayanja Nkangi: Prof Ephraim Kamuntu Wakhweya: 1971 – 1973 Kyompitira Sebalu: 1980 March 1992 - May 1998 326 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 327 WORLD BANK COUNTRY OFFICE Addendum WO RLD BANK STA F F The World Bank recognizes that poverty has no borders. Neither does excellence. So the Bank continually searches for the bright- est, most talented individuals from around the globe, employing a dedicated and committed workforce that is diverse in gender, nationality and ethnic background 328 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 329 Staff/History: Country Office The World Bank Uganda Country Office Staff In mid-2013, the World Bank Uganda Country Office had a total of 63 staff Photo/Laura Walusimbi MOUSTAPHA A. VICTOR OCAYA ZEMEDKUN GIRMA SARAH N NSUBUGA MARY BABIRYE NDIAYE Sr. Highway Engineer Sr.Transport Specialist Information Specialist Sr. Ex Assistant Country Manager (SDN) (ITS) Photo/David Sseppuuya ANNETTE BYANSANSA Team Assistant EMMANUEL ACUC Information Analyst (ITS) INNOCENT MULINDWA PETER OKWERO Sr. Health Specialist (HD) APOLLO MUHAIRWE Operations Officer (HD) Half Salary in Foreign Currency, Education Specialist Front Office (HD) Unused Computers 25 Years Ago Sarah Nsibirwa Nsubuga (above) is the longest-serving officer, hav- ing been at the Uganda Country Office for half the period the World Bank has had a relationship with Uganda. She shares her experi- ROSEMARY AGNES KAYE JEAN-PASCAL RACHEL K. ASGER HALLBERG BORG ence working with eight Country Managers/Resident Representa- SEBUDDE KYABUKOOLI Program Assistant NGANOU Sr. Economist (PREM) Country Officer tives, late-night partying as a way of balancing life and work, and Program Assistant (HD) Sr. Economist (PREM) (SDN) the changes of technology that have brought greater efficiency. I joined the World Bank on April 5, 1988 when Dawn Kaddu, ‘tripled’ up as the Res Rep’s personal the Country Office was about eight years old. secretary, Office Administrator and Accountant. It had a very small staff of nine - the Resident Representative (Country Manager), the Pro- Computers were just being introduced in the 1990s. gram Officer, the Administrative Assistant, the Two computers were still in their packaging, accumu- Secretary/Office Technology Assistant, the Re- lating dust, because nobody knew how to use them. I JACOB RASMUSSEN CLARE BUSINGYE GRACE NAKUYA BARBARA MAGEZI ELIJAH OSIRO ceptionist, the Office Assistant, and three driv- was hired to convert the office from typewriters and Jr. Professional Officer Water & Sanitation MUNANURA Sr. Public Sector Spe- E T Consultant ers. The office was housed at the time in the East telex machines into a fully computerized operation. (TASU) (PREM) Sr. Procurement cialist (PREM) Governance (PREM) African Development Bank building. Specialist (OPCS) I was hired as a secretary, but because the office The Resident Representative, Grant Slade (1985 had few staff, I then trained and doubled at the of- to 1990) did most of the operations work with fice technologist. My colleagues, Dawn Kaddu, Enid the Program Officer, James Matovu, whose main role was Agriculture. The Admin Assistant, CONT. ON PAGE 333 330 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 331 Staff/History: Country Office The World Bank Uganda Country Office Staff SHEILA GASHISHIRI MOSES KIBIRIGE NOELINE KITONSA HERBERT OULE CONNIE Communications Sr. Private Sector Devt Program Assistant Environment NEKESSA-OUMA Associate (AFRSC) Specialist (FPD) (Urban) Specialist (SDN) Social Development Specialist (SDN) May 14, 2010, Serena Lake Victoria Hotel, En- Staff receive food basket, tebbe: Senior officers relaxing and bonding in a staff dance at a staff retreat with Country Man- Missions Come as Uganda Rebuilds ager Kundhavi Kadiresan (fifth from left). Photo/ World Bank Archives RASIT PERTEV JOSEPH ORYOKOT HOWARD HARRIET SAM D. MUTONO Sr. Agricultural Rural Development CENTENARY KIWANUKA Sr. Water & Sanitation Economist(SDN) Specialist (SDN) CONT. FROM PAGE 331 ford shopped in Kenya - Nairobi or Busia - and Specialist (SDN) Sr. Procurement Program Assistant Specialist (OPCS) (HD) stocked up for a whole year. Staff of the World Kyomugisha (receptionist and later a senior sec- Bank and the UN were privileged to receive hard- retary), were very supportive. Dawn, who was a ship compensatory allowances in the form of a perfectionist, instilled great qualities in us. food basket which comprised 6kg of Blue Band margarine, 5kg of Kimbo cooking fat, 20lts of Grant was a real diplomat - soft-spoken with cooking oil, 20kg of rice, a box of soap and Omo good communication skills, yet very strict. He washing powder, 4pks of baking flour, sugar, and was professional and a perfectionist. We enjoyed toothpaste. Some colleagues used to sell them or working with him on both the social and profes- opened shops, which sold the goodies at retail sional side. He served at a time when the coun- prices. We also got half our salary in a currency HARRIET NATTABI CHRIS DAVIS BERINA GLADYS ALUPO MARTIN try was starting to rebuild from chaos and was of one’s choice, but had to travel to the Country Water & Sanitation NSUBUGA UWIMBABAZI Program Assistant ONYACH-OLAA therefore attracting many missions and projects. Office in Nairobi to collect it. Specialist (SDN) STC Market Water Resources Mgt (PREM) Sr. Urban Specialist Operations Specialist (SDN) Projects like the Second Telecom Rehabilita- Shortly after I was hired, an economist, Emman- Analyst(SDN) (SDN – Water) tion, Phosphates Engineering, Third and Fourth uel Ablo from Ghana, joined and I would give Education projects, Public Enterprise, Third him administrative support. Ablo was eventually Technical Assistance, Reconstruction, Economic replaced by Chukwuma Obidegu (1991) who was Recovery, Railways Project Health, Sugar Reha- then followed by Iraj Alikhan (1994) and subse- bilitation, and Forestry Rehabilitation got un- quently Robert Blake. All three economists were derway at that time. I also saw the first Country very gentle and nice to work with. For some rea- Economic Memorandum and Economic Recov- son they were very low ‘maintenance’ and worked ery programs initiated. very closely with the Ministry of Finance. Ablo joined in 1988 during the Economic Recovery JACQUELINE Because of the chaos, the economy was crawling, Program and worked on the Economic Recovery PAUL KAMUCHWEZI EDWIN MOGUCHE ELEANOR OLUMBE FLORENCE K. with minimal importation due to the scarcity of Credit I and II and Structural Adjustment Credit OKIRIA Financial Management Financial Management Admin Assistant (RM) NTONO foreign exchange. Essential commodities were Resource Management Specialist (OPCS Specialist (OPCS) Accounting Analyst Officer (RM) scarce and very expensive; families that could af- CONT. ON PAGE 335 (RM) 332 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 333 Staff/History: Country Office The World Bank Uganda Country Office Staff The East African Development Bank building hosted the World Bank Uganda Country Office from 1980 to JANET ATIANG BARBARA NALUGO JULIET GOMBYA BARBARA PAUL NSIBAMBI 1995. Photo/David Sseppuuya Team Assistant Team Assistant Program Assistant KATUSABE Office Assistant (Procurement) (FM/Roads) (AFMUG) Receptionist Perfume Perks Stop With Expansion, Staff Enjoy Career Development CONT. FROM PAGE 333 used for project information. The accounting unit was using the field office module, which closed every I, while Chukwuma transitioned through Struc- 24th day of the month and diskettes sent to HQ in STELLA LAMWAKA CAROLYN N. NDAULA JOHNSON ISRAEL S. BBOSA PATRICK N. OLINGA tural Adjustment Credit I (SACI) and also did Washington for reconciliation. STT Admin Assistant Operation Officer- IFC MWESIGYE Sr. Driver Driver SACII. Alikhan (1994) worked through the SACII (RM) Driver and PRSC, while Blake worked on the PRSC. This is a role I enjoyed for only a short period and then it became un-interesting. Much as we were us- Because Uganda was struggling, we got many ing computers, the system could not be manipulated visiting missions. The first Country Economic and therefore if a mistake was made, it could not be Memorandum (CEM) group was led by Paul Da- corrected but, instead, the error would remain in the chune. But the most interesting group was the system. To correct it, a reverse screen of the trans- economists who worked on the Economic Recov- action had to be made to balance the accounts. So ery credit. It comprised of Sanjay Pradhand, now some years later, an accountant, Norah Nakato, came a Vice President, Gerald Byam (now a Director), to process the normal accounts transactions while MARLON LEZAMA LIV BJORNESTAD CLARENCE N. Tom Allen (retired), Ken Newcomb (retired), Dawn concentrated on the budget and office admin- JOAN OKUNE WILLY R. Senior Programme Fiscal Economist TSIMPO Operations Officer KAGARURA Anne Von (retired), Katrine Jordan, and Oye istration. Coordinator TASU-JBSF Economist TASU-JBSF Researcher Meesook, among others. Together, we combined TASU-JBSF TASU-JBSF work and pleasure. We used to go dancing and At this point Agnes Kaye, Trudy Ofwono, Noeline stay out late and suffer the next day in the office. Kitonsa, and Agnes Biribonwa had joined, with Jack- Those days, since we were still few, we all used to ie Okiria coming shortly after. go together for lunch and other social activities. We would also get gifts like perfumes. Sadly as During Choi’s tenure the Poverty Alleviation Program the office expanded, all these perks slowly faded (PAP) and the Social Costs of Adjustment, commonly away. known as PAPSCA, were launched. When Choi left in 1992, K. Loganathan acted as Resident Rep and he When Grant Slade returned to Washington, hired Nelson Ofwono to assist James Matovu, and Seung Choi became the new Resident Represen- later Harriet Nannyonjo to work on Education. Brian tative towards the end of 1990. An additional Falconer was then appointed substantively. ELIZABETH NINAN DAMALIE NYANJA CELIA V. NAMYALO DANIEL MWANJE MBUSO GWAFILA secretary, Edith Ekwaro, had been hired to re- Senior Education Team Assistant Program Analyst E T Consultant Senior Energy lieve some duties from the overloaded Dawn. We enjoyed working with Loga (as he was popularly Specialist TASU-JBSF DFID Trust Fund (PREM) Specialist Before Grant left, I had been asked to assist known) just as he enjoyed his acting capacity. Dur- Dawn with accounts. Before SAP, the offices had an accounting system called FACT, which was CONT. ON PAGE 336 JOHN WAMBOKA ALEX LUGEMWA PELGA ORIGASHA Office Assistant Office Assistant Short Term Temporary 334 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 335 Staff/History: Country Office How technology has evolved When I joined the Country Office, there were only two computers, which we used for only word processing and accounts. Remote commu- nication was by telex and later a facsimile (fax). Around 1990, the office received more comput- ers and work became more interesting as we moved away from telex to an email system, the ‘All-in-One’, which was combined with faxes. With the ‘All-in-One’ we got the first server, called a Microvax. It was purely a mail server and had no file server functions. The local area Rwenzori House is the current seat of the World Bank Uganda Country Office. Photo/David Sseppuuya network (LAN) with this system was the Net- commander which managed the network and its settings including print jobs and network users. Decserver was a terminal server that could con- Christmas Parties a Big Attraction, nect remote terminals to a host (like a switch), and the Microvax over the LAN network. It was Office Technology Keeps Evolving a dial-up system that was used to exchange mail celebrating their birthday. This is one event we I recall he once supported me for a developmen- before the dedicated line system. looked forward to but it eventually fell between tal assignment that had been announced by In- the cracks. Another social event that is still formation Solutions Group (ISG) of the World We were later elevated to Banyan Vines, which CONT. FROM PAGE 335 memorable is the Christmas parties, which were Bank. Though it did not work out, he did not sit allowed for file storage and printer services. This taken very seriously. We used to organize very on an opportunity that could benefit a member system did not last, and in 1997-8 we switched ing Loga’s time, Agriculture boomed as he put a lot of interesting parties that were hosted at the Coun- of his staff. to a wide area network after VSATs were intro- effort in it. There was the Agricultural Research and try Manager’s home, which helped save money duced. This is when we started using the DAMA Training project, Water Supply Engineering, Second on venue hire. We used to invite our counter- When Robert Blake left the Country Office, we lines, moving from international call dialing. We, Power, and Forestry Rehabilitation. parts in Government, Bank of Uganda, our fami- were joined by Grace Yabrudy (2003 -2008) for however, did not have the internet until late. We lies and friends. We eventually would produce a five years; she gave me the opportunity to go to started to use Enterprise Network 2.5 and, later, Loga elevated us and supported our career develop- list of people to invite annually and maintained Washington for a development assignment for Windows NT 3.0 and Lotus Notes, which was ment. The World Bank started using a new email a fun group on our list. So, friends outside the which I am forever grateful. Grace was succeed- also around the time internet was introduced system called ‘All-in-One’, and it combined the email Bank looked out for the announcement of the ed by Kundhavi Kadiresan who served for three in the field. From then we have moved to Enter- system, fax and telex. Loga was a workaholic and year’s World Bank Christmas party. years (2008-2011) prise Desktop 4, 5 and 5.7 and now 7, being used wanted systems to work without complication. For at the 50-year celebrations mark. that reason, he supported me to go to Paris for train- In 1995 we moved to Rwenzori House which, At the time of the 50 years celebrations, Uganda ing with IT colleagues from other country offices. then, was a state-of-the-art building. During the had got the first indigenous African as Country All these changes have come with a lot of prod- This helped me to understand the Bank’s unique relocation, Brian was out of the country recu- Manager. It has been Ahmadou Moustapha Ndi- ucts that have eased communication within the network system then called the Decserver and Mi- perating after fracturing his leg in a serious car aye’s blessing to be the one under whose watch offices and remotely. While we used to dial-in crovax. accident. Gaiv Tata, the Financial Management we are marking the jubilee celebration. He is ap- the office using the SLIP modems to replicate Specialist, was in charge. proachable and very supportive of staff devel- our mail, we can now use E360 and access the From 1994 when Brian worked in Uganda, the fol- opment. Personally, he gave me an opportunity whole desktop environment, which is a full office lowing projects were supported: Private Sector Com- Among the new faces as we settled in Rwen- to work in the front office and gain experience environment from home. petitiveness (PSCP), Environmental Management zori House were Victorio Ocaya, Mary Biteker- in operations. Moustapha has also encouraged Capacity Building, and the Economic and Financial ezo and Peter Okwero. Randy Harris succeeded other colleagues interested in developing their Access to internet services is now easier and Management projects. Brian, but did not stay long before Robert Blake, career to approach him with an identified area cheaper – there is free access from many public an economist, took over to run the show from of interest. He identifies well with the country places. Taking a computer home and connecting Because of the small numbers, we had a culture of 2001-2003. Though Randy was here for a short context and brings light in difficult moments. to the full office network has made life easy. Bet- getting together whenever one of the ladies was time, he supported staff to develop their careers. ter still, the systems are stable and reliable. 336 Celebrating 50 Years of Development Partnership: The World Bank and Uganda 337 THE WORLD BANK 338 Celebrating 50 Years of Development Partnership: The World Bank and Uganda