Uganda
Uganda's wealth of nature
Uganda’s fertile soils, regular rainfall and significant natural resources make it a country of great economic potential. Strong growth since the year 2000, largely centred around exports, agricultural products and tourism, has driven Uganda’s development, with particular successes in combatting AIDS, education and healthcare.
This growth has had considerable environmental impact – the rate of forest cover loss in Uganda stands at 2.6% annually, one of the highest in the world – but there are encouraging signs of a new, greener approach to economic management.1 Uganda’s Green Growth Development Strategy (UGGDS, 2017) sets out a holistic vision of inclusive, sustainable and low carbon development, with good institutional mapping, clear targets and a detailed sectoral plan.2 Their national ambitions have been informed by detailed environmental accounts which show that half of the country’s wealth is in natural capital.
Green financial policy is a weak spot, and both clean energy and decarbonisation targets lack concrete measures to achieve them. Newly discovered oil reserves have attracted an influx of overseas cash, which will require strong governance and institutions to manage well.
In general, Uganda's response to COVID has been relatively conventional, although with a reasonable focus on social inclusion thanks to measures to support household incomes through tax deferrals, green jobs, and credit for small businesses, particularly those employing women and young people. In general, the stimulus supports business as usual activities, lacking meaningful consideration of a green recovery and alignment with the more ambitious structural transition set out in the 2017 UGGDS.
Serious challenges remain for Uganda around governance and transparency. In 2016, Uganda’s public sector was ranked 151st out of 176 countries for corruption, costing the country around US$286 million every year.3 Corruption at this scale exerts a significant drag on development. Consistent economic growth since the mid-1990s helped to cut the overall rate of extreme poverty from 56% in 1992 to 20% in 2014, but since then poverty has begun to tick up again.4
But overall, Uganda’s green economy policies are relatively strong, at least on paper. Uganda's challenge is to meet its ambitious targets with strong implementation. Citizens and civil society groups have a crucial role in ensuring the government strengthens its institutions, tackles corruption and delivers on its commitments - making sure that well-intentioned green policies achieve their fullest social and environmental impact.
Policy Scores
Last updated 14 Jun 2022
Green COVID-19 Recovery
Uganda has issued more than USD$0.4 billion in fiscal stimulus or 1% of GDP in response to the COVID-19 pandemic, according to the IMF’s latest estimate. In June 2020, following a series of relief packages directed at healthcare, the Ugandan government released an ‘Economic Stimulus and Growth Strategy’ allocating funds from the 2020/21 National Budget to support struggling households and businesses. The economic package aimed to "stimulate the economy to safeguard livelihoods, jobs, businesses and industrial recovery". Measures were targeted at supporting household incomes and businesses through tax deferrals, increased government spending and provision of access to credit for SMEs. Green initiatives are relatively few and shallow, with pledges to invest in a small number of solar powered irrigation/water supply schemes (but no broader consideration of renewables in relation to energy or transport sectors) and a generic commitment to enforce existing environmental protection legislation. There is some support for green jobs and inclusivity, as the package announces additional seed capital to support women and youth small scale enterprises, as well as the expansion of the government's public works programme - though it's unclear which industries and sectors the funds will prioritise at present.
Overall, economic stimulus supports business-as-usual activities, lacking meaningful consideration of a green recovery and alignment with the more ambitious structural transition set out in Uganda's Green Growth Development Strategy. Looking ahead, there is plenty of scope to increase ambition, with over half of the country’s wealth dependent on natural capital. Uganda’s recently launched Third National Development Plan (2021-2025), which aims to promote "sustainable industrialisation for inclusive growth, employment and sustainable wealth creation", is perhaps an indication of greener intent - albeit with proposed green measures set alongside the continued development of petroleum.
Uganda has issued more than USD$0.4 billion in fiscal stimulus or 1% of GDP in response to the COVID-19 pandemic, according to the IMF’s latest estimate. In June 2020, following a series of relief packages directed at healthcare, the Ugandan government released an ‘Economic Stimulus and Growth Strategy’ allocating funds from the 2020/21 National Budget to support struggling households and businesses. The economic package aimed to "stimulate the economy to safeguard livelihoods, jobs, businesses and industrial recovery". Measures were targeted at supporting household incomes and businesses through tax deferrals, increased government spending and provision of access to credit for SMEs. Green initiatives are relatively few and shallow, with pledges to invest in a small number of solar powered irrigation/water supply schemes (but no broader consideration of renewables in relation to energy or transport sectors) and a generic commitment to enforce existing environmental protection legislation. There is some support for green jobs and inclusivity, as the package announces additional seed capital to support women and youth small scale enterprises, as well as the expansion of the government's public works programme - though it's unclear which industries and sectors the funds will prioritise at present.
Overall, economic stimulus supports business-as-usual activities, lacking meaningful consideration of a green recovery and alignment with the more ambitious structural transition set out in Uganda's Green Growth Development Strategy. Looking ahead, there is plenty of scope to increase ambition, with over half of the country’s wealth dependent on natural capital. Uganda’s recently launched Third National Development Plan (2021-2025), which aims to promote "sustainable industrialisation for inclusive growth, employment and sustainable wealth creation", is perhaps an indication of greener intent - albeit with proposed green measures set alongside the continued development of petroleum.
Governance
National green economy plan
The Uganda Green Growth Development Strategy (UGGDS) of 2017 lays out a clear and relatively comprehensive sustainability plan, including implementation roadmaps to 2020 and 2030, data collection for 34 key indicators, a reasonably clear budget targeting USD 1.8 billion/year (although heavily reliant on international funding), and a clear division of responsibility between government departments.
The Uganda Green Growth Development Strategy (UGGDS) of 2017 lays out a clear and relatively comprehensive sustainability plan, including implementation roadmaps to 2020 and 2030, data collection for 34 key indicators, a reasonably clear budget targeting USD 1.8 billion/year (although heavily reliant on international funding), and a clear division of responsibility between government departments.
Inclusive governance
The UGGDS was developed through a collaborative process of workshops, retreats and outreach, led by a National Task Force . Gender inclusion has been a key focus for policy outcomes, though less clear in policy development process. Though new approaches to governance are emerging – as typified in UGGDS – widespread corruption remains a serious problem at all levels of the Ugandan government and public sector. Transparency and accountability are low; NGOs are subject to heavy restrictions and burdensome regulation; and freedom of assembly is severely limited.
The UGGDS was developed through a collaborative process of workshops, retreats and outreach, led by a National Task Force . Gender inclusion has been a key focus for policy outcomes, though less clear in policy development process. Though new approaches to governance are emerging – as typified in UGGDS – widespread corruption remains a serious problem at all levels of the Ugandan government and public sector. Transparency and accountability are low; NGOs are subject to heavy restrictions and burdensome regulation; and freedom of assembly is severely limited.
SDG business strategy
Uganda's Third National Development Plan (NDPIII) has been prepared in alignment with the SDGs, and the private sector is recognised as a key strategic partner for implementing them - but it does not contain specific programmes to foster business engagement with the SDGs. More detailed NDPIII implementation plans are expected to be forthcoming, and funding has been allocated to the SDGs Secretariat to develop SDG advocacy and Information communication materials. The Uganda Bureau of Statistics (UBOS) in collaboration with the Ministries of Finance and Planning and the National Planning Authority are also developing a comprehensive business reporting tool to measure compliance with the SDGs.
Uganda's Third National Development Plan (NDPIII) has been prepared in alignment with the SDGs, and the private sector is recognised as a key strategic partner for implementing them - but it does not contain specific programmes to foster business engagement with the SDGs. More detailed NDPIII implementation plans are expected to be forthcoming, and funding has been allocated to the SDGs Secretariat to develop SDG advocacy and Information communication materials. The Uganda Bureau of Statistics (UBOS) in collaboration with the Ministries of Finance and Planning and the National Planning Authority are also developing a comprehensive business reporting tool to measure compliance with the SDGs.
Wealth accounting
The national statistics agency, with support from UN Statistics, maintains a detailed and regularly updated series of environmental accounts under the National Environment Management Plan (2014), including natural capital. Manpower surveys have been held since 1988 and contribute towards government understanding of human capital.
The national statistics agency, with support from UN Statistics, maintains a detailed and regularly updated series of environmental accounts under the National Environment Management Plan (2014), including natural capital. Manpower surveys have been held since 1988 and contribute towards government understanding of human capital.
Finance
Green finance plan
The National Financial Inclusion Strategy 2017-2022 aims to ensure timely, affordable, and adequate financial services to all citizens in the economy. It includes policies towards micro-credit infrastructure and digital commerce, but only limited acknowledgement of sustainability issues. On-going discussions between Ministries to create a Green Growth Financing Vehicle, but no concrete commitments yet.
The National Financial Inclusion Strategy 2017-2022 aims to ensure timely, affordable, and adequate financial services to all citizens in the economy. It includes policies towards micro-credit infrastructure and digital commerce, but only limited acknowledgement of sustainability issues. On-going discussions between Ministries to create a Green Growth Financing Vehicle, but no concrete commitments yet.
Green fiscal & monetary policy
A Public Expenditure Review on Green Growth is currently underway at the National Planning Authority, aimed at ensuring compliance between planned and actual expenditure on sustainability, and annual budgets are assessed for compliance to the National Development Plan. All government bodies down to the local level have been directed by the Ministry of Finance to produce budgets for environment, biodiversity and climate change.
A Public Expenditure Review on Green Growth is currently underway at the National Planning Authority, aimed at ensuring compliance between planned and actual expenditure on sustainability, and annual budgets are assessed for compliance to the National Development Plan. All government bodies down to the local level have been directed by the Ministry of Finance to produce budgets for environment, biodiversity and climate change.
Safe & accountable banks
The Bank of Uganda conducts micro-stress tests that are aimed at assessing the resilience of the banking sector to systemic risks. The tests assess credit and liquidity risk at present, with no social or environmental components. The Institute of Certified Public Accountants has developed a sustainability reporting framework, including environmental risk assessment, for financial organisations, but these are voluntary.
The Bank of Uganda conducts micro-stress tests that are aimed at assessing the resilience of the banking sector to systemic risks. The tests assess credit and liquidity risk at present, with no social or environmental components. The Institute of Certified Public Accountants has developed a sustainability reporting framework, including environmental risk assessment, for financial organisations, but these are voluntary.
Pricing carbon
Some initial policy discussions and private sector initiatives, and the National Environment Management Authority has proposed a carbon tax to fund reforestation, but no official commitments or project announcements as yet. Some regional pilot projects for using carbon credits to conserve forests and incentivise waste composting.
Some initial policy discussions and private sector initiatives, and the National Environment Management Authority has proposed a carbon tax to fund reforestation, but no official commitments or project announcements as yet. Some regional pilot projects for using carbon credits to conserve forests and incentivise waste composting.
Sectors
Green sectoral policy plan
The Uganda Green Growth Development Strategy provides strong strategic direction for sectors towards green growth, and mandates a multi-sectoral implementation body to pool ministries, local and city governments, and public sector bodies across five focus areas of agriculture, natural capital, cities, transport and energy. The ‘tripartite’ structure involving sectoral groups, planning ministry, and civil society groups is a new innovation. Ministry of Trade and the Uganda Cleaner Production Center are developing a Green Manufacturing Strategy.
The Uganda Green Growth Development Strategy provides strong strategic direction for sectors towards green growth, and mandates a multi-sectoral implementation body to pool ministries, local and city governments, and public sector bodies across five focus areas of agriculture, natural capital, cities, transport and energy. The ‘tripartite’ structure involving sectoral groups, planning ministry, and civil society groups is a new innovation. Ministry of Trade and the Uganda Cleaner Production Center are developing a Green Manufacturing Strategy.
Small business support
National policy for SMEs includes innovation support, capacity building, access to finance, and new legal formalisation. A certification scheme for green social enterprises is in development, designed to support “equity, inclusiveness and environmentally friendly businesses for sustainable development".
National policy for SMEs includes innovation support, capacity building, access to finance, and new legal formalisation. A certification scheme for green social enterprises is in development, designed to support “equity, inclusiveness and environmentally friendly businesses for sustainable development".
Carbon budgeting
Uganda’s decarbonisation target is a 28% reduction in emissions by 2030 compared to BAU, contingent on additional international finance. No government evaluation yet made as to consistency with a 1.5°C warming limit, no carbon budgeting mechanisms announced, and no legally-binding elements.
Uganda’s decarbonisation target is a 28% reduction in emissions by 2030 compared to BAU, contingent on additional international finance. No government evaluation yet made as to consistency with a 1.5°C warming limit, no carbon budgeting mechanisms announced, and no legally-binding elements.
Clean energy policy
Sustainable energy is a key element of the Uganda Green Growth Development Strategy, with clear targets, institutional responsibilities and implementation tools. Ambition is high; with large hydropower facilities already well established and new ones under construction, Uganda is now seeking to expand into solar and geothermal energy. However, 2017 targets for RE market share were missed, and recent discoveries of oil may distract from clean energy priorities, including replacing high carbon energy sources for transportation and buildings.
Sustainable energy is a key element of the Uganda Green Growth Development Strategy, with clear targets, institutional responsibilities and implementation tools. Ambition is high; with large hydropower facilities already well established and new ones under construction, Uganda is now seeking to expand into solar and geothermal energy. However, 2017 targets for RE market share were missed, and recent discoveries of oil may distract from clean energy priorities, including replacing high carbon energy sources for transportation and buildings.
People
Green jobs
The Uganda Green Growth Development Strategy is clear on the need and desirability of generating green jobs, but lacks concrete proposals to incentivise this. On-going initiatives led by the Ministry of Gender, Labour and Social Development (MGLSD) to develop a national green jobs strategy, but yet to be finalised.
The Uganda Green Growth Development Strategy is clear on the need and desirability of generating green jobs, but lacks concrete proposals to incentivise this. On-going initiatives led by the Ministry of Gender, Labour and Social Development (MGLSD) to develop a national green jobs strategy, but yet to be finalised.
Pro-poor policy
A key principle of the Green Growth Development Strategy is social inclusiveness, and it articulates clear interventions aimed at reducing inequality in gender, incomes etc. Cross-cutting inclusion of environmental risks in the poverty reduction strategy, however no concrete pro-poor green transition measures proposed.
A key principle of the Green Growth Development Strategy is social inclusiveness, and it articulates clear interventions aimed at reducing inequality in gender, incomes etc. Cross-cutting inclusion of environmental risks in the poverty reduction strategy, however no concrete pro-poor green transition measures proposed.
Participatory policymaking
Ongoing monitoring of government policies assessing gender inclusiveness, equal opportunities and budget compliance led by the National Planning Authority (NPA). The Equal Opportunities Act created a commission to monitor and evaluate laws to ensure equality of impact and affirmative action in favour of marginalised groups. Wider policy consultation processes are less clear, and overall public sector transparency is extremely low with discrimination against some marginalised groups – especially sexual minorities – both legal and common.
Ongoing monitoring of government policies assessing gender inclusiveness, equal opportunities and budget compliance led by the National Planning Authority (NPA). The Equal Opportunities Act created a commission to monitor and evaluate laws to ensure equality of impact and affirmative action in favour of marginalised groups. Wider policy consultation processes are less clear, and overall public sector transparency is extremely low with discrimination against some marginalised groups – especially sexual minorities – both legal and common.
Innovative social protection
No mention of new social models or of innovative social policies in green plans, and the majority of pilot schemes are conducted by NGOs, for example local trials of universal basic income. Some pilots administered by the Ministry of Labour supporting young unemployed people and the elderly, but these yet to be expanded beyond regional level.
No mention of new social models or of innovative social policies in green plans, and the majority of pilot schemes are conducted by NGOs, for example local trials of universal basic income. Some pilots administered by the Ministry of Labour supporting young unemployed people and the elderly, but these yet to be expanded beyond regional level.
Nature
Ocean & land conservation
National Development Plan and sectoral development plans both integrate SDGs, including Goals 14 & 15, and the Ministry of Finance has produced a detailed readiness review for the 2030 Agenda. Concrete targets on water pollution, ecosystem management and restoration, reforestation, sustainable forestry, and research and development.
National Development Plan and sectoral development plans both integrate SDGs, including Goals 14 & 15, and the Ministry of Finance has produced a detailed readiness review for the 2030 Agenda. Concrete targets on water pollution, ecosystem management and restoration, reforestation, sustainable forestry, and research and development.
Natural capital accounts
A Natural Capital Accounting programme is underway, with support from the World Bank, UNEP-WCMC, UNSD, UNECA and the Garbarone Declaration on Sustainable Development. Prior to this, the National Planning Authority in partnership with Uganda Bureau of Statistics and the Ministry of Water and Environment had begun developing natural resource accounts for forestry and water.
A Natural Capital Accounting programme is underway, with support from the World Bank, UNEP-WCMC, UNSD, UNECA and the Garbarone Declaration on Sustainable Development. Prior to this, the National Planning Authority in partnership with Uganda Bureau of Statistics and the Ministry of Water and Environment had begun developing natural resource accounts for forestry and water.
Natural capital committee
No commission in place but the agencies that advise and manage natural capital programmes – chiefly, the Uganda Bureau of Statistics (UBOS) and the National Planning Authority (NPA) – are (in theory) semi-autonomous from the government.
No commission in place but the agencies that advise and manage natural capital programmes – chiefly, the Uganda Bureau of Statistics (UBOS) and the National Planning Authority (NPA) – are (in theory) semi-autonomous from the government.
Nature-based fiscal reform
Few taxes in place. However, several initiatives such as feed-in tariffs to encourage off-grid renewable energy, and the 2019 National Environment Act sets out a commitment to the polluter pay principle, user pay principle and precautionary principle and for the use of fiscal and tax instruments to preserve the environment and natural resources, although not through an explicitly natural capital framing.
Few taxes in place. However, several initiatives such as feed-in tariffs to encourage off-grid renewable energy, and the 2019 National Environment Act sets out a commitment to the polluter pay principle, user pay principle and precautionary principle and for the use of fiscal and tax instruments to preserve the environment and natural resources, although not through an explicitly natural capital framing.
References
- World Bank, [Ugandan government steps up efforts to mitigate climate change](https://www.worldbank.org/en/news/feature/2019/05/31/ugandan-government-steps-up-efforts-to-mitigate-and-adapt-to-climate-change)
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Ugandan Government, [Uganda Green Growth Development Strategy 2017](https://www.undp.org/content/dam/LECB/docs/pubs-reports/undp-ndc-sp-uganda-ggds-green-growth-dev-strategy-20171204.pdf)
- Transparency International, [Country Profile: Uganda](https://www.transparency.org/country/UGA); US State Department, [Uganda Human Rights Report](https://2009-2017.state.gov/documents/organization/204390.pdf)
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IFAD, [Rural Poverty in Uganda](https://web.archive.org/web/20150924033202/http://www.ifad.org/operations/projects/regions/Pf/factsheets/uganda.pdf); World Bank, [Country Overview: Uganda](https://www.worldbank.org/en/country/uganda/overview)