DfID-Uganda Partnership

Uganda aspires to be independent of aid and a middle-income country that has doubled its annual average per capita income of $460 by 2040. However, widespread corruption, weak oversight capabilities, daunting challenges on transparency for investors and development partners, as well as inaccessible and unregulated financial services have resulted in poor governance, ethnic divisions and economic inequality in the country. Almost half of northern Uganda still lives in extreme poverty. As Uganda’s population growth rate remains the third-highest in the world, the government’s ability to provide basic social services to its citizens continues to be tested. HIV and AIDS prevalence is steadily increasing and food prices are rising. The inadequate supply of electricity and lack of transport infrastructure across the country exacerbate Uganda’s economic and social woes. The United Kingdom’s development program for Uganda aims to tackle barriers to equitable, sustainable and inclusive growth, and help the country meet the Millennium Development Goals. Funding levels Among the 29 multilateral and bilateral donors providing support to Uganda, the United Kingdom is the second-largest bilateral donor, allocating 355 million pounds ($545 million) for fiscal years 2011-12 to 2014-15. Click on image to view larger table About 34 percent of total aid to the African country is being channeled through U.N. agencies, the World Bank and European Union for joint programs on population, HIV and AIDS prevention and treatment, curbing gender-based violence, and generating programs for wealth creation. Close collaboration with other bilateral donors such as the U.S. Agency for International Development and the Delegation of the European Union is also being bolstered. About 34 percent of funding will be for contracts on health, social protection and financial programs. The Department for International Development’s budget support for the Ugandan government comprises 32 percent of total U.K. aid to the country. After gathering enough evidence of fund misuse, however, the United Kingdom froze 10 percent of budget support in 2012, specifically funds earmarked for the office of the prime minister. Funding priorities The United Kingdom’s engagement with the country is in line with the guiding principle of Uganda’s National Development Plan, which is “intertwining economic growth and poverty eradication.” From 2011 to 2015, DfID plans to assist Uganda in transitioning into a prosperous and stable democracy, maximizing the benefits of oil revenues for all, and protecting the interests of the most vulnerable. DfID will focus on: - Helping Uganda achieve the MDGs especially in health. - Boosting wealth creation through infrastructure and financial services. - Strengthening governance and security. Click on image to view larger table Of the major projects in Uganda, Post-Conflict Development in Northern Uganda receives the largest funding (100 million pounds). DfID has pledged direct funding for post-conflict districts in northern Uganda where instability is greatest and poverty is most severe. In areas such as the Karamoja region, the United Kingdom will help move the region from emergency support to medium-term development programming. The health sector receives a significant amount of funding from DfID, with two of the programs being the U.N. Joint Program for Implementation of the National Population Policy in Uganda (30 million pounds) and the project on Accelerating the Rise in Contraceptive Prevalence in Uganda (25 million pounds). These are some of the projects DfID is undertaking to help the country achieve the MDGs. Devex analysis In 2008, DfID dedicated 1.4 billion pounds in aid to Uganda over the next 10 years through the Development Plan Arrangement, which signaled the United Kingdom’s long-term commitment to Uganda’s development. The United Kingdom’s suspension of direct financial aid to the Ugandan government due to alleged corruption inevitably changed the two nations’ dynamic. Despite the suspension, however, DfID Permanent Secretary Mark Lowcock said the United Kingdom is still optimistic that budget support for the African country will be reinstated. “We had good reason to believe that some of the money we were providing was being stolen. We hope the freeze will not last long,” Lowcock said in December 2012. He added that programs on regional trade, financial services, family planning, malaria and social protection will continue. As DfID continues to ascertain the effectiveness of the Ugandan government’s handling of the corruption charges, the department is expected to channel more funding through multilateral and nongovernmental organizations. Contact: DfID Uganda Tel.: (256-414) 331-000 Fax: (256-414) 348-732 ugandaenquiries@dfid.gov.uk Join the Devex community and access more in-depth analysis, breaking news and business advice — and a host of other services — on international development, humanitarian aid and global health.