Business
Funding the Future: Shs. 593,646 Billion Investment in National Development Plan (NDP IV) with 70% Government Support – Ministry of Finance
On January 7, 2025, key government officials presented to the Parliamentary Committee on Budget. Attendees included Hon. Amos Lugoloobi (State Minister of Finance for Planning), Hon. Henry Musasizi (Minister of State for General Duties), and other experts from the Ministry of Finance and the National Planning Authority. Their objective was to explain the Fourth National Development Plan (NDPIV).
What is the National Development Plan?
The National Development Plan serves as a comprehensive blueprint for the country, helping Uganda determine its priorities to improve the quality of life for all citizens. The government has previously implemented three plans (NDPI, NDPII, and NDPIII), and they are now focused on the fourth one, known as NDPIV, which will span the years 2025/26 to 2029/30.
Why is this important?
NDPIV is informed by lessons learned from the previous plan (NDPIII) and aims to achieve ambitious targets, such as Uganda Vision 2040, which envisions the ideal state of Uganda by the year 2040. Additionally, the government aspires to grow the economy tenfold over the next 15 years. To develop this plan, extensive consultations were held with experts, local governments, and international stakeholders.
What is the goal of NDPIV?
The primary objective of NDPIV is to enhance income levels, create jobs, and strengthen the economy. The plan features a central theme: “Sustainable Industrialization for Inclusive Growth, Employment, and Wealth Creation.” This emphasizes leveraging industries, including agriculture, manufacturing, and technology, to generate employment and promote collective advancement.
What are the key components of the plan?
NDPIV focuses on five major goals:
- Increase production and value addition: Enhance agriculture, manufacturing, mining, tourism, and technology to produce better quality products.
- Improve education and health: Equip individuals with new skills and ensure access to healthcare so they can perform better in their jobs.
- Support the private sector: Foster the growth of private businesses to boost job creation.
- Develop infrastructure: Invest in better roads, housing, and energy systems to facilitate business operations and improve living standards.
- Enhance government efficiency: Strengthen the government’s functionality to support national growth.
What will happen if the plan succeeds?
If NDPIV is successfully implemented:
- Uganda’s economy (measured as GDP) could grow significantly, increasing from $53.2 billion in 2023/24 to $158 billion by 2029/30.
- Average monthly incomes may rise from Shs. 202,131 to Shs. 578,635.
- There will be a reduction in poverty levels, with more people gaining access to banks and financial services.
What is the estimated cost?
The total cost of implementing the NDPIV is projected to be Shs. 593,646 billion over five years. Approximately 70% of the funding will come from the government, while the remaining 30% will be sourced from private businesses.
What happens next?
The government has submitted the plan to Parliament for approval. If Parliament endorses it, Uganda will commence work on this extensive plan aimed at improving the lives of its citizens.
In summary, the Fourth National Development Plan (NDPIV) is a strategic initiative designed to promote growth, job creation, and overall betterment for Uganda. It acts as a roadmap for the country’s future!