Govt unveils new policy to boost returns on public investment

________________

The Ministry of Finance and Economic Planning has disseminated the National Public Investment Management (NPIM) Policy, a strategic framework aimed at ensuring better planning, accountability, and efficiency in the use of government resources.

This dissemination comes at a crucial time as the country begins implementing the Fourth National Development Plan (NDP IV), which sets an ambitious target of expanding Uganda’s economy from $50 billion in the financial year 2022/23 to $500 billion over the next 15 years.

Speaking at the dissemination event held at Mestil Hotel in Kampala on Thursday, 19 June 2025, the Finance Ministry’s budget director, Hannington Ashaba, described the NPIM Policy as a transformative tool in Uganda’s approach to planning, managing, and monitoring public investments.

"It is a great honour for me to officially preside over the dissemination process of the National Public Investment Management Policy," Ashaba said.

"This activity is a big step forward in how Uganda plans, manages, and monitors public investments, and it comes at a very important time in our country’s development journey."

For years, Uganda has faced challenges in translating public investment into tangible improvements in citizens’ lives.

The new policy addresses long-standing issues such as delays in land acquisition, inadequate technical capacity in government agencies, prolonged project timelines, cost overruns, and poor maintenance of completed public facilities.

“These problems,” Ashaba noted, “reduce the value of our investments and delay the benefits to our people. They also make it harder to create jobs, reduce poverty, and grow the economy.”

Currently, around 39% of Ugandan households remain in the subsistence economy, producing primarily for survival rather than for income.

The NPIM Policy aims to change this trajectory by ensuring every shilling invested delivers real value, through job creation, improved services, and sustained economic growth.

The policy will also establish strict standards for the execution of all future government projects, focusing on timeliness, cost-efficiency, and quality. It further prioritises the proper maintenance of completed projects to guarantee longevity and continued public utility.

According to Ashaba, Uganda is concurrently increasing investment in large-scale infrastructure projects to enhance regional integration.

These projects are aligned with strategic frameworks including the East African Community (EAC), the Common Market for Eastern and Southern Africa (COMESA), and the African Continental Free Trade Area (AfCFTA).

To attract investment, the government is working to reduce bureaucratic hurdles, eliminate inefficiencies, and lower the cost of doing business. High-potential sectors identified under the strategy include manufacturing, tourism, ICT, and services.

The success of the NPIM Policy, according to finance minister Matia Kasaija, will depend heavily on collaboration. Stakeholders across ministries, departments and agencies, civil society, development partners, and the private sector are being urged to support the reforms.

“Only by working together can we achieve real and lasting development for all Ugandans,” Kasaija emphasised.

Speaking at the same event, Julius Mukunda, executive director of the Civil Society Budget Advocacy Group, called on the government to ensure effective policy implementation in order to accelerate progress.