The Ministry of Finance, Planning and Economic Development, in partnership with the World Bank, has undertaken a comprehensive review of the Uganda Intergovernmental Fiscal Transfers Programme for Results (UGIFT) to assess its achievements and inform the design of its successor programme, UGIFT 2.0.
UGIFT 1.0, a flagship government initiative supported by about $500 million (Shs1.8 trillion) in World Bank financing, has focused on strengthening service delivery at local government level through improved fiscal transfers and performance-based funding.
The review comes at a critical transition period following the official closure of UGIFT 1.0 on December 31, 2025.
According to officials, the mission forms part of the World Bank’s Implementation Completion and Results Report (ICR), conducted alongside the Public Investment Management Plus (PIM+) operation to evaluate the programme’s development outcomes and its overall impact on local government service delivery in Uganda.
During the PIM+ mission wrap-up meeting held at the Ministry of Finance headquarters in Kampala, Barbara Magyezi Ndamira, Senior Public Sector Specialist at the World Bank, highlighted several reform areas emerging from the review.
She noted that government transfers to local governments have increased significantly under the programme, with fiscal resources rising by about 68 percent. However, she stressed the need to strengthen planning, budgeting, and accountability systems to ensure the funds translate into improved services.
“Operations and maintenance of infrastructure such as newly constructed skills schools, upgraded health facilities, blood banks, and renovated primary schools is crucial. This supports the broader government asset management agenda,” Ndamira said.
She also pointed to human resource management and data-driven decision-making as key areas requiring improvement.
Challenges such as wage budgeting, recruitment cycles, and performance management were identified as gaps under UGIFT 1.0.
Addressing these issues, she said, will be critical in the next phase of the programme to ensure more efficient service delivery at both central and local government levels.
Another priority highlighted during the review is job creation and local economic development.
Ndamira explained that UGIFT 2.0 will need to explore strategies that strengthen skills development, support local enterprises, and contribute to the country’s broader economic growth agenda.
The mission also examined the programme’s monitoring and evaluation framework, assessing the quality of data collection, the accuracy and relevance of reported information, and how effectively it measured the programme’s intended outcomes.
Officials said the Implementation Completion and Results Report is expected to be finalized by April 2026, after which a post-completion action plan will be monitored to address outstanding issues.
Meanwhile, Verena Fritz, Lead Governance Specialist at the World Bank, emphasized the importance of ensuring fairness and adequacy in the distribution of resources across local governments.
She noted that the government has increasingly allocated resources directly to districts and service delivery facilities, a move that has helped strengthen local-level implementation.
“UGIFT 2.0 should ensure strengthened accountability, improved service delivery, and a robust public investment management process,” Fritz said.
Officials observed that UGIFT 1.0 has already delivered several tangible benefits across sectors.
In education, the construction of new schools has reduced travel distances for students, eased overcrowding in existing institutions, and improved access to learning opportunities.
The programme has also supported improvements in the health sector, road infrastructure, agricultural extension services, and performance management systems in local governments.
As planning for UGIFT 2.0 progresses, the Ministry of Finance and the World Bank say they will build on the lessons from the first phase to develop a more efficient and accountable programme.
Authorities say the next phase is expected to further strengthen service delivery, promote equitable development, and support sustainable public investment across the country.