54189
                                   REPUBLIC OF UGANDA

                                CHAIRMAN'S SUMMING UP

         Poverty Reduction Strategy Paper and Joint IDA-IMF Staff Advisory Note


                     Meeting of the Board of Executive Directors of IDA

                                          April 20, 2010



       Executive Directors discussed the Poverty Reduction Strategy Paper (PRSP) prepared by
the Government of Uganda and the Joint IDA-IMF Staff Advisory Note.

        Directors commended the Government on the PRSP. They welcomed the participation of
a wide range of stakeholders in its preparation, and noted that the priorities that emerged from
the consultations are well-reflected. Directors broadly supported the PRSP's four priority
targets. They concurred with the government's strategy to address persistent barriers to growth
while expanding opportunities for the poor by strengthening human capital development;
boosting physical infrastructure, particularly in the energy and transport sectors; supporting
science, technology and innovation; and, facilitating private access to critical production inputs,
particularly in agriculture. Some Directors however, highlighted the need to better prioritize the
PRSP, and complement it by actions aimed at making growth more inclusive.

        Directors encouraged the Authorities to maintain its strong record of prudent
macroeconomic management while encouraging greater mobilization of domestic resources, and
space for private sector initiatives to implement the ambitious public investment program. In
particular, they called on the Bank to intensify its support to the Authorities in their efforts to
enhance the use of public-private partnerships (PPPs), particularly in infrastructure, to reduce the
pressure on Government funding. To this end, the need to improve the legal and fiscal
framework was stressed. The importance of a greater role for IFC particularly in the SME sector
was also highlighted.

       Directors also noted that weak governance, slow implementation of reforms and
continued high perception of corruption could adversely affect the implementation of the PRSP.
They urged the Government to step up its efforts to improve governance and institutional
capacity building - at the national and sub-national level, and to undertake concrete actions to
increase transparency, accountability, expenditure efficiency and project monitoring. The need
to adequately address gender disparities, especially in the agriculture sector, was also
emphasized.

       Finally, Directors encouraged the Bank to stay engaged in Uganda to support the
Authorities in their efforts to further reduce poverty and diversify the economy. They looked
forward to the forthcoming CAS.