National Development Report (Ndr) | Financial Year 2013/14
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THE REPUBLIC OF UGANDA National Planning Authority United Nations Development Programme NATIONAL DEVELOPMENT National Planning Authority REPORT (NDR) Planning House Plot 15 Clement Hill Road National Planning Authority P.O. Box 21434 Kampala, Uganda FINANCIAL YEAR 2013/14 2014 NATIONAL DEVELOPMENT REPORT (NDR) | FINANCIAL YEAR 2013/14 FOREWORD This National Development Report (NDR) for the FY2013/14 is the fourth report to be produced by the National Planning Authority (NPA). The report has been produced in fulfilment of the requirement by the National Planning Authority Act, 2002, and the National Development Plan (NDP) 2010/11-2014/15. The assessment of the performance of the economy in the report highlights achievements and challenges faced by the monetary, fiscal, external and real sectors during the fourth year of the NDP implementation. The assessment also highlights the performance of the economy against set macroeconomic framework indicator targets. In addition, the report assesses the progress made against the NDP Results Framework, including the NDP Goal/Theme level indicators and the NDP Objectives level indicators. In addition, the report assesses the performance against the NDP Sector/Thematic Objectives and key strategies and interventions. It should be noted that the report does not directly assess the performance of MDAs and local governments. Nevertheless, it captures performance information regarding the achievement of NDP sector specific objectives and strategies. This NDR is intended to inform Government and other stakeholders about the overall performance of the economy and the status of implementation of the development initiatives highlighted in the NDP. It is also aimed at informing the oversight functions of Government in order to enhance decision making for faster socioeconomic transformation and prosperity. The report provides findings and recommendations in various sections, which are aimed at informing policy and decision making at various levels. On behalf of NPA, I wish to thank the Ministries, departments, agencies and districts that responded to NPAs request for data and information to put together this report. I implore all of you to read and make use of the findings and recommendations highlighted. You may also provide feedback and make recommendations for improving futures reports. Kisamba Mugerwa CHAIRPERSON, NATIONAL PLANNING AUTHORITY 2 I NATIONAL DEVELOPMENT REPORT (NDR) | FINANCIAL YEAR 2013/14 CONTENTS FOREWORD..................................................................................................................FOREWORD ............................................................................................................................. I CONTENTS....................................................................................................................CONTENTS ............................................................................................................................... II LIST OF TABLES.......................................................................................................... VI LIST OF TABLES ..................................................................................................................... LIST OF FIGURES........................................................................................................ VII LIST OF FIGURES ................................................................................................................... LIST OF ACRONYMS AND ABBREVIATIONS....................................................... IX LIST OF ACRONYMS AND ABBREVIATIONS ................................................................. EXECUTIVE SUMMARY............................................................................................. XV EXECUTIVE SUMMARY ....................................................................................................... THE MACROECONOMIC PERFORMANCE FOR FY 2013/14............................ XV TheTHE Real MACROECONOMIC Sector................................................................................................................. PERFORMANCE FOR FY 2013/14 ................................ ...XV 16 TheThe Monetary Real Secto andr ................................Financial Sector...................................................................................................................................................................... XVI 16 OverallThe Monetary implementation and Financial Progress Sector on the ................................ NDP themes and Objectives.................................................................................. XVII 17 CHAPTEROverall implementation ONE: INTRODUCTION........................................................................... Progress on the NDP themes and Objectives ................................ 1 18 1.1.CHAPTER Background........................................................................................................... ONE: INTRODUCTION .................................................................................. 1 26 1.2. Rationale............................................................................................................... 1 1.1. Background ............................................................................................................... 26 1.3.1.2. Objectives.............................................................................................................Rationale ................................................................................................................... 2 26 1.4.1.3. Scope.....................................................................................................................Objectives .................................................................................................................. 2 27 1.5.1.4. Methodology.........................................................................................................Scope ......................................................................................................................... 2 27 1.6.1.5. PurposeMethodology of the Report........................................................................................... ............................................................................................................. 3 27 1.7.1.6. StructurePurpose of of the the Report......................................................................................... Report ................................................................................................ 3 28 CHAPTER1.7. Structure TWO: of MACRO-ECONOMIC the Report ................................ PERFORMANCE............................................................................................... 4 28 2.1.CHAPTER The Global TWO: Economic MACRO Outlook.............................................................................-ECONOMIC PERFORMANCE ................................ ........4 29 2.1.1 Global Trade......................................................................................................... 6 2.1. The Global Economic Outlook ................................................................................. 29 2.2 African Economic Outlook................................................................................... 9 3 II NATIONAL DEVELOPMENT REPORT (NDR) | FINANCIAL YEAR 2013/14 2.2.1 Monetary Policy Developments for Africa...................................................... 10 2.2.2 Human development in Africa......................................................................... 12 2.2.3 Debt analysis.................................................................................................... 13 2.3 EAC Economic Outlook................................................................................... 13 2.3.1 Inflation developments in the Region............................................................... 14 2.3.2 Exchange rate developments............................................................................ 14 2.3.3 Trade and Balance of Payments....................................................................... 14 2.4 Development Performance in the Ugandan Economy..................................... 14 2.4.1 Macroeconomic Indicators............................................................................... 16 2.4.2 Financial Sector Development......................................................................... 17 2.4.3 The External Sector developments................................................................... 20 2.4.4 Capital and financial accounts.......................................................................... 22 2.4.5 Fiscal Sector Performance FY 2013/14............................................................ 22 CHAPTER THREE: NDP IMPLEMENTATION PROGRESS............................ 25 3.1 Overview of the NDP Objectives, Focus and Priorities................................... 25 3.1.1 Progress against key NDPI Theme and Objectives (Indicators and targets).... 26 3.1.2 Progress on NDPI objectives............................................................................ 29 3.1.3 Overview of Budget Priorities and Sector Allocations over the years............. 35 3.1.4 Status of implementation of the NRM Manifesto............................................ 36 CHAPTER FOUR: NDP THEMATIC AREAS PERFORMANCE...................... 50 4.1 PRIMARY GROWTH SECTORS..................................................................