A two-week mission by the World Bank to review Uganda’s flagship fiscal decentralisation programme has concluded with discussions on achievements under the first phase and preparations for the next phase of reforms.
The mission focused on the Uganda Intergovernmental Fiscal Transfers Program for Results (UGIFT) and the implementation of Public Investment Management PLUS (PIM PLUS), an initiative aimed at strengthening how the government prepares, appraises and implements public investment projects.
The World Bank delegation, led by Barbara Magezi, assessed progress made under the $500 million UGIFT 1.0 programme and documented lessons to inform the design of the proposed UGIFT 2.0.
Speaking during the wrap-up meeting at the Ministry of Finance, Planning and Economic Development, Acting Director of Budget Hannington Ashaba said the programme has significantly improved financing and delivery of essential social services at the local government level.
“UGIFT has played a pivotal role in strengthening the financing and delivery of critical social services in health, education, water and agriculture in local governments,” Ashaba said on behalf of Permanent Secretary and Secretary to the Treasury Ramathan Ggoobi.
He thanked the World Bank team and government officials for participating in the mission, noting that the discussions helped reflect on the outcomes of UGIFT 1.0 while identifying priorities for the next phase of the programme.
Ashaba also expressed optimism about the Public Investment Management PLUS initiative, which became operational in February 2026, saying it will address long-standing challenges in project preparation, planning and implementation.
“Performance of projects to deliver quality services and value for money is our focus now,” he said, adding that delays in project execution and cost variations remain key challenges that the government is working to address.
Regarding the proposed UGIFT 2.0 programme, Ashaba called for stronger strategies to finance social services, particularly in the areas of wage, non-wage and development funding.
On behalf of the World Bank, Barbara Magezi commended the government for progress made under UGIFT 1.0 and urged stakeholders to maintain the same momentum in implementing the PIM PLUS reforms.
She also highlighted several priority areas for the next phase of the programme, including increased financing for service delivery, improved human resource management, stronger oversight of service delivery at both central and local government levels, better allocation and utilisation of development funds, and a stronger focus on job creation and local economic development.
The discussions are expected to inform the development of UGIFT 2.0 as Uganda continues efforts to strengthen decentralised service delivery and improve the efficiency of public investments.