Uganda’s national financial system comprises of financial institutions (formal, semi-formal and informal), financial markets, and the payment systems, which together enable the exchange of goods and services and the allocation of capital. The formal financial institutions include Commercial Banks, Microfinance Deposit-taking institutions and Credit Institutions.
Infrastructure is broadly divided into social and economic infrastructure. In the context of NDP I & II, infrastructure includes Transport and Works, Energy, ICT and Water for production sector. Government has promoted infrastructure development to open up productive sectors of the economy and to boost private sector competitiveness by reducing the cost of doing businesses and linking markets to production centres.
Uganda’s private sector comprises over 1,100,000 enterprises which employ approximately 2.5 million people, an equivalent of 90 percent of total non-farm private sector workers. The private sector contributes approximately 80 percent of GDP. Uganda is one of the most enterprising countries in the world, ranking number one in 2016. However Uganda’s private sector continues to be dominated by Micro enterprises (93.5%), Small enterprises (4.1%) and Medium enterprises (2.4%).
Government aspires to equip citizens with relevant knowledge, information and skills to enable them improve their quality of life, respond to development challenges and compete nationally, regionally and internationally. Government’s investment in human development has accordingly gained traction over the NDP period. NDP II prioritizes human capital development as one of its two fundamentals for development.
Urban development is listed among the key fundamentals in Vision 2040 to be harnessed due to the key role it plays in the development process. Properly planned urban development aids the provision of housing facilities, basic services, and infrastructure for the growing population, promotes clean living and sustainable urban areas hence enhancing production and improving standards of living.
Rural Development refers to the comprehensive societal change that involves transformation in agriculture (mechanization and commercialization) and diversification of the rural economy coupled with substantive improvements in access to social and economic services and infrastructures in rural areas.
Social Development refers to the process of empowering communities to harness their potential through cultural growth, skills development and Labor productivity for sustainable and gender responsive development. Social Development entails protecting vulnerable persons from deprivation and livelihood risks and also nurturing a value based system on national identity, faith, customs, traditions and patriotism.
Economic development is the process through which the structure of the economy improves on account of investment driven and productivity centered economic growth.
Uganda’s Vision 2040 identifies human capital development as a key fundamental for development. NDP II emphasized the importance of creating an environment in which people can develop their full potential and lead productive and creative lives in line with their needs and interests. The plan identified skills development as a means to raise productivity and incomes to enhance competitiveness of the economy. To increase the stock of a skilled and healthy workforce, the human capital development priority areas identified in the NDP II include:
Developing and maintaining reliable, sustainable, affordable and climate resilient infrastructure in both rural and urban areas has been identified as being critical for driving social, cultural and economic development. NDPII has identified infrastructure as one of the fundamental drivers for socio-economic transformation of the country over the medium term.
