Republic of Uganda SECOND NATIONAL DEVELOPMENT PLAN 2015/16 – 2019/20 (NDPII) Vision “A Transformed Ugandan Society from a Peasant to a Modern and Prosperous Country within 30 years” Theme “Strengthening Uganda’s Competitiveness for Sustainable Wealth Creation, Employment and Inclusive Growth” Draft rd 3 March 2015 CONTENTS LIST OF MAPS ................................................................................................................................................................... VII LIST OF TABLES............................................................................................................................................................... VIII LIST OF FIGURES ................................................................................................................................................................ IX LIST OF BOXES .................................................................................................................................................................... X EXECUTIVE SUMMARY ........................................................................................................................................................ XI PART I: BACKGROUND, SITUATION ANALYSIS AND DEVELOPMENT CONTEXT ...................................................................... 1 INTRODUCTION ............................................................................................................................................................................ 1 CHAPTER 1: BACKGROUND ................................................................................................................................................. 2 1.1 INTRODUCTION ............................................................................................................................................................... 2 1.2 PERFORMANCE OF NDPI FOR THE PERIOD 2010/11 – 2013/14 ............................................................................................... 3 1.2.1 Growth..................................................................................................................................................................... 3 1.2.2 Employment ............................................................................................................................................................. 3 1.2.3 Socio-Economic Transformation ................................................................................................................................. 3 1.2.4 Increasing household incomes and promoting equity .................................................................................................... 3 1.2.5 Enhancing the availability and quality of gainful employment ......................................................................................... 4 1.2.6 Improving stock and quality of economic infrastructure ................................................................................................. 4 1.2.7 Increasing access to quality social services ................................................................................................................. 5 1.2.8 Promoting science, technology, innovation and ICT to enhance competitiveness ............................................................ 5 1.2.9 Enhancing human capital development ....................................................................................................................... 6 1.2.10 Strengthening Good Governance, Defence and Security .......................................................................................... 6 1.2.11 Promoting sustainable population and use of the environment and natural resources .................................................. 6 1.3 NDP I IMPLEMENTATION CHALLENGES ................................................................................................................................ 7 1.4 KEY LESSONS ................................................................................................................................................................ 8 1.5 THE SECOND NATIONAL DEVELOPMENT PLAN (NDPII) ........................................................................................................... 9 1.6 STRUCTURE OF NDP II .................................................................................................................................................. 10 CHAPTER 2: SITUATION ANALYSIS ..................................................................................................................................... 11 2.1 INTRODUCTION ............................................................................................................................................................. 11 2.2 COMPETITIVENESS ........................................................................................................................................................ 11 2.2.1 Economic Management and Financial Services ......................................................................................................... 12 2.2.2 Infrastructure .......................................................................................................................................................... 23 2.2.3 Human Capital Development ................................................................................................................................... 28 2.2.4 Physical Planning and Urban Development ............................................................................................................... 39 2.2.5 Governance ........................................................................................................................................................... 40 2.3 WEALTH CREATION ....................................................................................................................................................... 48 2.3.1 Agriculture ............................................................................................................................................................. 48 2.3.2 Tourism ................................................................................................................................................................. 50 2.3.3 Minerals, Oil and Gas .............................................................................................................................................. 52 2.3.4 Environment and Natural Resources ......................................................................................................................... 54 1 2.3.5 Climate change ...................................................................................................................................................... 56 2.3.6 Trade, Industry and Cooperatives ............................................................................................................................. 57 2.3.7 Science, Technology and Innovation......................................................................................................................... 60 2.4 INCLUSIVE GROWTH ...................................................................................................................................................... 61 2.4.1 Labour and Social Development ............................................................................................................................... 61 2.4.2 Decentralized Service Delivery ................................................................................................................................. 67 2.4.3 Inequality ............................................................................................................................................................... 68 2.4.4 Dependency ........................................................................................................................................................... 74 CHAPTER 3: DEVELOPMENT CONTEXT ............................................................................................................................... 76 3.1 INTRODUCTION ............................................................................................................................................................. 76 3.2 KEY DEVELOPMENT OPPORTUNITIES ................................................................................................................................ 77 3.2.1 Demographic Changes ............................................................................................................................................ 77 3.2.2 Increased Global Demand for Agricultural Products .................................................................................................... 79 3.2.3 Increased Global Demand for Natural Resources ....................................................................................................... 79 3.2.4 Increased Access to Development Finance ............................................................................................................... 79 3.2.5 Trade and Expansion of Markets .............................................................................................................................. 81 3.2.6 Tourism potential ...................................................................................................................................................