IMF Executive Board Completes Third Review Under Policy Support Instrument for Uganda

Press Release No. 12/8.January 13, 2012. The Executive Board of the International Monetary Fund (IMF) today completed the third review under the Policy Support Instrument (PSI) for Uganda. In completing the review, the Board approved a waiver of nonobservance of the ceiling on net credit to government and the modification of quantitative assessment criteria.

The PSI for Uganda was approved on May 12, 2010 (see Press Release No. 10/195) and aims at maintaining macroeconomic stability and alleviating constraints to growth. The IMF's framework for PSIs is designed for low-income countries that may not need, or want, IMF financial assistance, but still seek IMF advice, monitoring and endorsement of their policies. PSIs are voluntary and demand driven (see Public Information Notice No. 05/145).

Following the Executive Board’s discussion on Uganda, Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, stated:

“The Ugandan authorities have appropriately tightened monetary policy to help reverse the acceleration in inflation over the past nine months, in light of increasing evidence that external events have spilled over into underlying domestic inflation. Restrained fiscal policy will support disinflation efforts. The tighter policy stance should facilitate a rebuilding of international reserves and reduce exchange rate volatility. Given higher interest rates and inflation, the Bank of Uganda will also reinforce financial sector supervision.

“Growth is likely to slow in 2012 in light of tighter policies combined with a weaker global growth outlook. However, rapid disinflation is critical to restore the stable macroeconomic environment that has been a necessary foundation for Uganda’s strong and inclusive growth over the past decade.

“Subsidies to the power sector have grown quite large and consume resources urgently needed to implement Uganda’s National Development Plan. The authorities have announced a significant increase in tariffs, which will contain subsidy costs this fiscal year. For the future, they are committed to establishing a system to adjust tariffs automatically in line with changes in underlying costs.

“Over the medium term, the authorities plan to bring their revenue effort in line with other East African countries, mainly by eliminating tax exemptions and incentives. They are also taking steps to put in place a more robust budget management system, including a prudent petroleum revenue management framework”, Mr. Shinohara added.

For information about Projects in Uganda see Eastern Africa Projects

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The fiscal dimension of HIV/AIDS in Botswana, South Africa, Swaziland, and Uganda

HIV/AIDS imposes enormous economic, social, health, and human costs and will continue to do so for the foreseeable future. The challenge is particularly acute in Sub-Saharan Africa, home to two-thirds (22.5 million) of the people living with HIV/AIDS globally, and where HIV/AIDS has become the leading cause of premature death. But now, after decades of misery and frustration with the disease, there are signs of hope. HIV prevalence rates in Africa are stabilizing. This book sheds light on these concerns by analyzing the fiscal implications of HIV/AIDS in Southern Africa, the epicenter of the epidemic. It uses the toolbox of public finance to assess the sustainability of HIV/AIDS programs.

Importantly, it highlights the long-term nature of the fiscal commitments implied by HIV/AIDS programs, and explicitly discusses the link between HIV infections and the resulting commitments of fiscal resources. The analysis shows that, absent adjustments to policies, treatment is not sustainable. But it also shows that, by accompanying treatment with prevention, and making existing programs more cost-effective, these countries can manage both treatment and fiscal sustainability. Even in countries where HIV/AIDS-related spending is high or increasing (as past infections translate into an increasing demand for treatment), the fiscal space absorbed by the costs of HIV/AIDS-related services will decline if progress in containing and rolling back the number of new infections can be sustained. The purpose of this study is to refine the analysis of the fiscal burden of HIV/AIDS on national governments and assess the fiscal risks associated with scaling-up national HIV/AIDS responses.

The study complements and contributes to the agenda on identifying and creating fiscal space for HIV/AIDS and other development expenditures. The findings from this study, and the analytical tools developed in it, could help governments in defining policy objectives, improving fiscal planning, and conducting their dialogue with donor agencies.

World Bank.Author:  Lule, Elizabeth ; Haacker, Markus.Document Date:  2011/01/01.Document Type:Publication.Report Number:65658.Volume No: 1 of 1

The fiscal dimension of HIV/AIDS in Botswana, South Africa, Swaziland, and Ugandan

Uganda. Millennium Science Initiative

The project's development objective is for Ugandan universities and research institutes to produce more and better qualified science and engineering graduates, and higher quality and more relevant research, and for firms to utilize these outputs to improve productivity for the sake of enhancing S&T-led growth.

World Bank.Author: Brar,Sukhdeep. Document Date:2011/12/04.Document Type: Implementation Status and Results Report.Report Number: ISR4772

Uganda.Millennium Science Initiative : P086513 - Implementation Status Results Report : Sequence 10

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Uganda.Privatization & Utility Sector Reform

Improve the quality, coverage and economic efficiency of commercial and utility services, through privatization, private participation in infrastructure (PPI), and an improved regulatory framework. This objective will be achieved by a higher level of private investment, and better quality and access of services in the telecommunications, water, electricity and transport sectors; divestiture and improved efficiency of remaining public enterprises; and strengthening the regulatory framework and institutions in relevant sectors.

World Bank.Author: Schlotterer,Robert.Document Date:  2011/12/04.Document Type: Implementation Status and Results Report.Report Number: ISR4676

Uganda - Privatization : P050439 - Implementation Status Results Report : Sequence 23

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Uganda.REDD plus benefit sharing

The Nile Basin Reforestation Project began in 2006 and consists of five small-scale Clean Development Mechanism (CDM) reforestation projects being implemented in the Rwoho Central Forest Reserve in South Western Uganda. Local communities are involved in the project in two ways. Formal 'participants' collaborate through pre-existing or newly formed community associations in each of the five project areas and 'non-participants' are involved through employment on the plantation.

The participant associations enter into a collaborative forest management agreement with the National Forest Authority (NFA) to manage part of the reserve. At the time of the study, this had only occurred in one project site between the NFA and the Rwoho Environmental Conservation and Protection Association (RECPA). Permanence is dealt with through a variety of conditions, such as limitations on when thinning, harvesting and re-planting can occur, and placing certain requirements on the NFA up to the relating to payment of damages and taking corrective actions depending on the cause of permanence failure.

The project will also generate temporary credits, which expire at the end of the commitment period following the one during which they were issued.

Author:  Peskett, Leo.Document Date:2011/01/01.Document Type:Working Paper.Report Number:65862.Volume No:1 of 1

REDD plus benefit sharing in Uganda

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