Govt seeks Shs7.4 trillion for second national strategy for private sector devt

The government has said it needs an overall of Shs7.473 trillion to finance the Second National Strategy for Private Development 2022/2023 to 2026/2027 (NSPSD II), across the different objectives.
 
The NSPSD II is a five-year planned intervention that aims at consolidating competitiveness among the private sector in the country. It replaces the National Strategy for Private Sector Development 2017/18-2021/22.
 
The Ministry of Finance, Planning and Economic Development, says the resources required to finance the programme are projected to gradually increase from Shs1.336 trillion in Financial Year (FY) 2022/2023 to Shs1.630 trillion in FY2025/2026, and reduce to Shs1.585 trillion in the final year of implementation.
 
Forty-seven percent (Shs3.560 trillion) of the resources are to finance the intervention on improving the macroeconomic environment.
“These resources are majorly allotted towards increasing access to long-term finance through capitalising the available public banks by up to Shs500 billion a year, and achieving balanced development and infrastructure maintenance through increasing the kilometres of the national paved and unpaved roads network, which will take up at least Shs130 billion a year,” the Finance ministry said.
 
At least 13.43 percent (Shs1.003 trillion) of the resources are to finance the intervention on enhancing access to markets and growing opportunities.
The Finance ministry explains that these resources are majorly allotted towards financing Covid-19 recovery to enable firms to rebound, stimulating export volumes up to a tune of Shs100 billion a year and fully serviced industrial parks taking up at least Shs37 billion a year.
 
Shs2.909 trillion (38.93 percent) of the fund will finance the intervention on increasing access to financial services.
These resources are majorly allotted towards increasing access to long-term finance through capitalising Uganda Development Bank (UDB) up to Shs500 billion a year and capitalising Uganda Development Corporation to stimulate novel innovations for research and product development.
Finance minister Matia Kasaija says government will advance the ongoing effort to fully revive the economy following the effects of Covid-19 pandemic and speed up social economic transformation.
 
“This will be done through targeted interventions that will be measured within a clear monitoring framework. Great focus will be made on local economic development and formalisation of enterprises for increased participation in export value chain and public procurement,” he says.  
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