PSD Programme Annual Review Held in Kampala

The annual review of Uganda’s Private Sector Development Programme (PSD) for FY 2024/25 was held at Mestil Hotel in Kampala, bringing together government agencies responsible for private sector development. This review marked the final assessment under the 3rd National Development Plan (NDP III) and provided an opportunity to reflect on achievements and challenges over the past five years.

During the meeting, PSST Dr. Ramathan Ggoobi, represented by the Director of Economic Affairs, Moses Kaggwa, emphasized that the PSD programme aims to increase private sector competitiveness and drive sustainable, inclusive growth across Uganda.

PSD Programme Objectives Highlighted:

- Lower the cost of doing business sustainably

- Strengthen private sector organizational and institutional capacity

- Promote local content in public programmes

- Unlock investment in strategic economic sectors

- Strengthen the enabling environment and enforcement of standards

Dr. Ggoobi noted that while non-commercial lending to key growth sectors increased from 1.5% to 4% of GDP since 2018/19, the share of the informal sector grew to 54.75% from 51%, highlighting areas needing further improvement.

Private Sector Financing Expands Through Key Programs

Speaking at the official opening of the review, the Minister of State for General Duties, Henry Musasizi, said Uganda’s economy has rebounded strongly and is increasingly recognized as one of the fastest-growing economies globally, with projections placing the country among the top by 2031.

He highlighted expanded financing to the private sector through:

- Uganda Development Bank (UDB): capitalization exceeding UGX 1.5 trillion over five years

- Emyooga Programme: funding over UGX 500 billion to local entrepreneurs

- Parish Development Model (PDM): over UGX 3.26 trillion reaching millions of beneficiaries, deepening financial inclusion and wealth creation.

Much of this funding supports small and medium enterprises (SMEs) across Uganda, helping them access credit and expand operations.

Tenfold Growth Strategy and Economic Vision

Musasizi noted that the Tenfold Growth Strategy, integrated into NDP IV, presents new challenges requiring enhanced delivery capacity under the PSD programme.

The strategy aims to grow Uganda’s economy tenfold to USD 500 billion by 2040, focusing on:

- Cheaper and accessible credit

- Financial inclusion

- Management of arrears

- Private sector capacity building

- Formalization of businesses

Private Sector Development Programme Implementation Action Plan

The Minister also launched the Private Sector Development Programme Implementation Action Plan.

Why This Review Matters

- Investment confidence: Strong macroeconomic indicators and expanded financing make Uganda more attractive to investors.

- Access to credit: Key programs like UDB, Emyooga, and PDM increase private sector participation in the economy.

- Inclusive growth: Rural and informal businesses gain better access to financing and support.

- Policy alignment: Lessons from NDP III inform NDP IV priorities, creating a stronger framework for private sector development.