Economics & Development

The country is experiencing robust economic growth with contributions across agriculture, industry, and services, while inflation remains moderate, the current account deficit shows signs of improvement alongside sustained foreign direct investment inflows, and fiscal pressures persist with elevated deficits and rising public debt. In the coming years, the Bank will focus on strengthening macroeconomic stability and fiscal sustainability through improved public financial management and domestic revenue mobilization, enhancing the investment climate to catalyze private investment and attract foreign direct investment, and boosting productivity and competitiveness in agriculture, industry, and services. Support will prioritize export diversification and trade facilitation to deepen integration into global markets, improvements in logistics and infrastructure to reduce costs and expand market access, and promotion of skills and technology adoption to advance higher value-added activities. The Bank will also support measures to enhance the resilience of the external sector, including policies that strengthen the balance of payments and deepen financial sector capacity, while fostering efficient public investment and debt management to underpin sustainable growth. These efforts aim to sustain broad-based growth, maintain price stability, and improve the quality and inclusiveness of economic transformation.

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Uganda is navigating a challenging macroeconomic and social context characterized by low domestic revenue mobilization, infrastructure and service delivery gaps, weak learning and health outcomes, rapid population growth, and persistent barriers to private investment, even as opportunities from natural resource development and regional integration emerge. In the coming years, the World Bank Group will pursue a sequenced One World Bank Group approach under the Country Partnership Framework (CPF) to enable private sector-led transformation and job creation, focusing first on strengthening macro-fiscal management, public expenditure and investment systems, domestic revenue mobilization, and the business and regulatory environment while deepening financial markets and improving governance of natural resources. International Development Association (IDA) support will invest in core infrastructure and human capital, expanding reliable energy, climate-resilient transport and urban services, and improving education quality and relevance, skills development including Technical and Vocational Education and Training, primary health care, nutrition, and water, sanitation and hygiene, complemented by adaptive social protection with attention to gender gaps and refugee-hosting areas. Building on these foundations, International Finance Corporation (IFC) will scale direct investments and advisory services in job-rich sectors such as energy, agribusiness value chains, manufacturing, tourism, digital infrastructure, and financial services, including Private Public Partnerships and innovations in digital finance to expand access for Micro, Small and Medium Enterprises. Multilateral Investment Guarantee Agency (MIGA) guarantees will mitigate political and credit risks to crowd in foreign direct investment and long-tenor financing. Across all engagements, the focus will integrate climate resilience, market creation, and inclusion, translating productivity gains into more and better jobs, particularly for youth and women.

Cash for Nutrition and Livelihoods Project for the Republic of Yemen, the development objectives are to provide targeted cash transfers and create livelihood opportunities to improve nutrition while strengthening delivery systems and institutions. Component 1: Cash for Nutrition will deliver timebound cash transfers to approximately 245,612 households with pregnant or lactating women and children under two, coupled with group-based nutrition education, routine screening, and referrals to health and nutrition services, with shock-responsive features, high digital payment coverage, and gender-responsive safeguards; delivery will be coordinated with the Yemen Health, Nutrition and WASH project to align community outreach and referral pathways. Component 2: Livelihood Interventions will sustain nutrition gains beyond cash support through bundled economic inclusion activities; Sub-component 2.1: Village Savings and Loan Associations will establish at least 2,748 groups across designed economic zones to expand savings, credit, entrepreneurship and financial literacy, prioritizing participation by Cash for Nutrition beneficiary households and women, and linking lending to nutrition-relevant activities; Sub-component 2.2: Microwork for Youth will pilot digital economic inclusion in Internationally Recognized Government areas by training 2,000 youth, providing devices and connectivity, mentoring and platform onboarding, with at least 50 percent female participation and partnerships with digital work providers. Component 3: Institutional Capacity and Systems Strengthening will enhance Social Fund for Development systems through a one stop service model to facilitate national identification and birth certificates and e-wallet enrollment, expand digital payments and financial literacy, strengthen grievance and data protection measures, and design, transfer and operationalize a social protection management information system, guided by phased, independent capacity assessments and competency-based training for potential future direct implementation. Component 4: Project Management, Monitoring and Evaluation will finance UNICEF implementation, compliance with environmental and social standards, technical assistance, evaluation, third-party monitoring and quality implementation support, with layered oversight and verification. Component 5: Contingent Emergency Response Component will enable rapid response to eligible crises through pre-agreed operational arrangements, leveraging the strengthened identification, payments and referral systems to deliver timely assistance.