Uganda - Country Partnership Framework for FY26-FY35 : Annex 5 - Systematic Country Diagnostic Update

Overview & Synopsis

Uganda faces a fragile recovery characterized by underutilized natural assets, stalled structural transformation, high informality and youth underemployment, demographic pressures including a large refugee population, growing climate risks, service delivery gaps, and governance and fiscal challenges that constrain inclusive growth. In the coming years, the World Bank Group will focus on productivity-led and more diversified growth with better jobs by deepening investments in human capital through improved foundational learning, equitable skills development, strengthened social protection, and more resilient and higher-quality health services; accelerating private sector development by advancing climate-smart agricultural commercialization and value addition, supporting youth transitions to productive employment, fostering productive urbanization and strategic economic corridors, expanding the adoption of digital technologies, and improving the predictability of the business and financial environment for micro, small, and medium enterprises; closing critical infrastructure gaps by increasing the reliability and affordability of electricity, developing more efficient and climate-resilient multimodal transport and logistics, and scaling adaptation and disaster risk management; promoting green growth and sustainable urban development through better land use planning, nature-based solutions, and strengthened environmental stewardship; enhancing governance and service delivery by improving transparency and accountability, reinforcing public sector capabilities, empowering local governments with more effective financing and delivery capacity, and expanding constructive citizen engagement; and safeguarding macro-fiscal stability by advancing domestic revenue mobilization, raising spending efficiency, and establishing transparent and accountable frameworks to manage prospective oil revenues for long-term development and resilience.