First Public Investment Management Conference
Finance Minister Matia Kasaija has said public investment is the backbone of our nation’s development and is essential for building the infrastructure, human capital, and institutions needed to elevate Uganda to middle-income status and beyond.
He made the remarks at the one-day Public Investment Management conference at Makerere University which was organized by the Ministry of Finance, Planning and Economic Development, in collaboration with the Public Investment Management (PIM) Centre of Excellence under the theme: “Navigating the Landscape of Public Investment Management in Uganda: Current Realities and Future Outlook."
The Finance Minister underscored government strategy of growing the economy tenfold from a GDP of $50 billion in FY 2022/23 to $500 billion within the next 15 years. "Achieving this milestone requires not only precise planning and implementation of investments but also a focused approach to addressing the pressing issue of youth unemployment by creating decent jobs," said Kasaija.
He said public investment must serve as a critical catalyst for job creation by prioritizing the expansion of vocational and technical training programs that collaborate closely with industries to ensure alignment with market demands.
"We come together as key stakeholders with a shared objective: To assess the current state of public investments and chart a course for the future, one that will drive economic growth, national development, and help us grow our economy tenfold," said the Minister.
He said an effective PIM system must have the ability to deliver inclusive and sustainable socio-economic transformation with in-built resilience to cross cutting issues of climate change and sustainable development goals.
Kasaija said the conference was timely as government embarks on the next phase of the national planning framework – the National Development Plan (NDP IV) and the budget process for next financial year 2025/26.
The Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, thanked the PIM Centre of Excellence for working closely with the Finance Ministry to ensure government of Uganda invests only in worthwhile projects, that contribute to national development.
He appreciated the initiative of separating good projects from bad ones using the PIM process, adding that investment projects must not only be financially viable, with returns on investment, but should also lead to improvement of the welfare of Ugandans.
"Government is taking seriously the PIM process," said Ggoobi, adding that the Finance Ministry has developed a framework for tracking project implementation. He said the framework standardizes and provides strategic direction by facilitating a culture of accountability, transparency and continuous improvement during project execution.
“To implement this framework, the Office of the Head of Project Execution is to be created to use the framework in collaboration with other M&E players such as OPM, OP and responsible departments in the Ministry,” said Ggoobi.
He also said government has offered seed financing to the Project Preparation Facility (PPF) under the National Planning Authority. The facility will simplify the process of creating a pipeline of bankable projects in strategic areas known as ATMS-Agro-industrialization, Tourism development, Mineral-based Industrial development including oil and gas, and Science, Technology and Innovation including ICT. In FY 2024/25, UGX 4 bn was earmarked for the facility to study 8 projects of which 2 are PPPs, 2 are externally funded, and 4 are GOU funded.
Prof.Glenn Jenkins of Queen’s University, Canada in his keynote address said although Uganda has made significant progress in the development of the PIM system, the immediate challenge that must be addressed is project implementation.
"Projects are not being completed on time. Time overruns and cost overruns," said Prof. Jenkins, adding that there is need for staff training in project management and a legal framework to support the PIM system.
"There is need to develop extensive applied skills and have information available to carry out appraisals across a wide range of projects," he said, adding that a modern PIM system is much more than an investment appraisal. He said it’s a system for decision making by the public sector that uses financial, economic and social appraisal criteria as a tool of decision making.
Earlier, the Vice Chancellor, Makerere University Prof. Nawangwe thanked Government for supporting Makerere to remain a global University. He said through the Innovation Fund, Makerere University has been able to incubate about 2500 innovations, of which 300 have potential for commercialization.