The fourth National Development Plan (NDP IV), identifies philanthropy Corporate Social Responsibility (CSR)) as one private financing options that can be leveraged by government over the medium term. According to the Public Investment Financing Strategy (PIFS) 2022, optimizing the benefits associated with CSR in Uganda requires that activities aligned to CSR be streamlined.
A research paper by BoU analyzed strategies for formalizing the CSR and the potential CSR revenue loss in Uganda using tax data for FY2022/23 and trade mis-invoicing data from Global Financial Integrity (GFI, 2021). The paper also examined the ILO Tripartite Declaration of Principles concerning Multinational Enterprises (MNEs) and Social Policy.
The findings indicated that, with a clear CSR framework in place, Ushs133 billion could be sourced from local companies while Ushs90 billion could be generated annually, from OECD/EU multinational enterprises. As at December 2023, Uganda’s banking sector registered a Profit After Tax (PAT) of Ushs1.436 trillion from which only 0.3% was spent under CSR registering Ushs28.7 billion potential loss in CSR contribution (international standards require that at least 2% is spent as CSR on PAT). Generally, without a CSR framework in Uganda, the country forfeits over Ushs300 billion annually.
The report recommends establishment of a National CSR Framework in Uganda to define roles, implement monitoring mechanisms, and align Corporate Social Responsibility (CSR) with national development priorities.
For further details, the captioned Report can be accessed via the link below: