What you need to know:
Contribution. Private sector expected to contribute 80 per cent of the funds with the government providing the rest.
Kampala. The second phase of the National Development Plan will require a budgettotalling Shs120 trillion over its five year period of implementation if its impact is to be felt, National Planning Authority (NPA) executive director Joseph Muvawala has said.
Speaking at a breakfast meeting with private sector leaders, organised by the NPA in Kampala yesterday, Mr Muvawala said the responsibility of running the economy is entirely a private sector affair as the government will only concentrate on improving its co-ordination, focus and enhancing the business environment.
He said the sector is expected to contribute at least 80 per cent of Shs120 trillion, something the leaders said is no mean achievement considering that the cost of doing business in Uganda is still higher than that of countries such as Kenya and Egypt.
He said: “You (the private sector) are going to fund the National Development Plan (NDP) 2015/16-2019/20. Without you we can do very little. This is your plan so interrogate it as much as possible so that we can all move together and avoid mistakes committed in the NDPI.”
He continued: “It is the private sector that will generate jobs, it is also you the private sector that are competitive and it is you who are the engine of growth, and not the government.”
The strategic direction of NDPII, as approved by Cabinet, prioritises areas with the greatest multiplier effect that will propel Uganda to middle income status in the next five years as stipulated in the Uganda Vision 2040. The proposed priority areas of NDPII are: agriculture; tourism; minerals; human capital development; and infrastructure.
“Therefore all sectors and other partners will be expected to contribute to the delivery and implementation of these prioritised areas. These priority areas will get the first call on additional national resources,” a statement by planning authority yesterday reads in part.
The private sector role in economic growth
Responding to the fact that economic growth would come from the planned investments in infrastructure and productivity improvements in agriculture, agro-processing, mineral development and manufacturing., Private Sector Foundation Uganda executive director Gideon Badagawa said: “For the private sector to deliver on its expectations, issues of cost of power and skilling Uganda’s manpower should be addressed.” He added: “There must be a change in attitude in civil service, and business must not continue as usual.
NDPI is coming to an end in June 2015 and NDPII will set the agenda for the next five years.
NDPII was expected to be in place by September 2014 – to inform Budget processes for 2015/16
The theme for NDPII is, “Strengthening Uganda’s Competitiveness for Wealth Creation, Inclusive Growth and Employment” and it is in consonance with the recommendations of the NDPI mid-term review, the regional agenda, and post 2015 sustainable development discussions.