NDA’s Pamela Mbabazi on financing Uganda’s development plans amid COVID-19

Uganda recently launched the National Development Plan 3, a comprehensive strategy aimed at increasing household incomes and improving the quality of life in the country. The ambitious plan requires approximately $111.62 million in financing, with a significant portion coming from both the public and private sectors. CNBC Africa had the opportunity to speak with Pamela Mbabazi, Chairperson of Uganda's National Development Authority, to discuss the financing of the development plans, especially in the midst of the ongoing COVID-19 pandemic. One of the key aspects of the National Development Plan 3 is the emphasis on a results-driven approach. Mbabazi highlighted the need for different units of government to work together towards a common goal, rather than operating in silos as seen in previous strategies. The program approach aims to bring various arms of government together to ensure a cohesive and coordinated effort in achieving desired outcomes. By focusing on collaboration and synergy among different government departments, the plan seeks to enhance effectiveness and efficiency in delivering services and implementing development projects. Another crucial element of the plan is the decentralization of development initiatives to bring them closer to the people. The introduction of the parish model as a basis for operation aims to ensure that services reach the grassroots level and meet the needs of the average Ugandans. Moving away from the district-centered approach, the plan prioritizes localized decision-making and data collection to inform policy formulation and service delivery. By involving local communities in the development process, the plan aims to enhance transparency, accountability, and inclusivity. Furthermore, the National Development Plan 3 highlights the increased role of the state in driving investments and fostering economic growth. Mbabazi emphasized the importance of government intervention in areas where private sector investment has been limited. By actively engaging in strategic sectors and market operations, the plan seeks to stimulate development and address gaps in key industries. Additionally, the plan aims to strengthen the Prime Minister's Office to oversee and coordinate government programs effectively, ensuring alignment and coherence across different initiatives. Addressing the concerns over past failures in NDP-1 and NDP-2, Mbabazi acknowledged that resource misallocation and lack of coordination had hindered previous development plans. However, she expressed confidence in the new approach outlined in NDP-3, which introduces 18 programs designed to steer Uganda's development trajectory over the next five years. By fostering collaboration, accountability, and digitization of processes, the plan aims to enhance transparency and efficiency in resource utilization. In terms of financing, the government aims to mobilize funds primarily through domestic sources, including improvements in tax administration and expanding the tax base. With a focus on reducing informality and enhancing revenue collection, the plan aims to generate the necessary resources to implement key development projects. Additionally, the government is exploring innovative financing options, including development assistance grants, to supplement domestic resources and support the successful implementation of NDP-3. Overall, the launch of Uganda's National Development Plan 3 signifies a new beginning in the country's development agenda, with a strong focus on collaboration, decentralization, and government-led investments. As Uganda strives to overcome the challenges posed by the COVID-19 pandemic and drive sustainable growth, the success of NDP-3 will hinge on effective coordination, transparent governance, and inclusive development strategies.