Uganda Launches $296.3 Million Public Financial Management Reform Strategy

Strategic Insights -

The Ugandan government has launched a five-year Public Financial Management (PFM) Reform Strategy, valued at $296.3 million, aimed at enhancing financial governance, accountability, and transparency across the country's public sector. The strategy, which covers the period from July 2025 to June 2030, is expected to improve public service delivery and support Uganda's socio-economic transformation agenda. The Ministry of Finance, Planning and Economic Development has described the new strategy as a critical framework for ensuring the efficient use of public resources.

Key Takeaways:

  • The PFM Reform Strategy is valued at $296.3 million (approximately Shs1.1 trillion) and will be implemented over a five-year period from July 2025 to June 2030.
  • The strategy aims to align fiscal policy with Uganda's development goals, improve budget planning and execution, promote debt sustainability, and reinforce transparency and citizen engagement.
  • The World Bank and Germany's KfW will contribute $97.4 million under the Uganda Strengthening Public Investment and Asset Management for Growth (PIM Plus) programme.
  • The UK's Foreign, Commonwealth and Development Office (FCDO) and France's Agence Francaise de Developpement (AFD) will provide additional funding to support the soon-to-be-established National Climate Finance Vehicle.
  • The strategy sets out to enhance service delivery in sectors such as agriculture, education, health, water and sanitation (WASH), roads, and energy, driven by results-based accountability plans.
  • The government is committing $126.25 million over the five-year period, with the remaining funding expected to come from development partners.
  • The strategy's pillars include aligning fiscal policy with national development goals, strengthening fiscal planning and budgeting frameworks, ensuring sustainable debt management, enhancing transparency, and upgrading internal coherence between recurrent and development budgets.
  • Entering the new strategy period, State Minister for Planning Amos Lugoloobi noted that the previous PFM Strategy (2018-2025) had focused on budget transparency and increasing domestic tax revenue.

Statistics:

  • $296.3 million (approximately Shs1.1 trillion) - the value of the PFM Reform Strategy.
  • $97.4 million - the contribution from the World Bank and Germany's KfW under the Uganda Strengthening Public Investment and Asset Management for Growth (PIM Plus) programme.
  • $126.25 million - the government's commitment to the PFM Reform Strategy over a five-year period.
  • 5 years - the duration of the PFM Reform Strategy.

Sources:

  • Ministry of Finance, Planning and Economic Development, Government of Uganda.
  • World Bank.
  • KfW (German Development Bank).
  • UK's Foreign, Commonwealth and Development Office (FCDO).
  • France's Agence Francaise de Developpement (AFD).