The Country Private Sector Diagnostic (CPSD), a report jointly published by the IFC and the World Bank has applauded Uganda for the headways made in economic liberalisation. The CPSD advocated Uganda to increase private sector investment in its agribusiness, energy, and housing sectors, as well as advance business climate reforms for better growth. It pointed out that such a move would boost its economic growth, create jobs, and strengthen its position in East Africa.
The report identified sectors like energy, housing, and agribusiness (namely fisheries, dairy, and maize) as potential sectors to stimulate economic growth and job creation to solve the challenges of high population growth and urbanization. IFC has underlined the role of private sector investment in key growth areas to create sufficient jobs for a young and rapidly growing labour force.
During the last two decades, Uganda’s pro-private sector policies contributed to significant inward investment, high levels of regional trade, and a vibrant informal economy. However, the report noted that the government’s pro-private sector agenda started losing momentum later. COVID 19 also worsened the situation pushing 2.6 million Ugandans back into poverty in the short-term. Challenges like Poor infrastructure, human capital, institutional capacity etc also slowed down the growth and limited private sector investment.
