The World Bank and the government of Uganda have signed a US100 million financing agreement for the Private Sector Competitiveness and Enterprise Development Project (CEDP), a move that will see Uganda improve its business environment.
Speaking at the signing ceremony at the Ministry of Finance Headquarters in Kampala on Jan. 31, the Bank's Country Representative Ahmadou Moustapha Ndiaye said Uganda has considerable potential to achieve higher growth and create new jobs but faces serious constraints in access of land, licensing procedures and construction permits which significantly increase the cost of doing business.
This financing will aim to boost government and private sector institutions involved in formulating and implementing policy reforms in these areas, said Maria Kiwanuka, the finance minister.
The project will run for five years. It will also support reforms in tourism, ICT among other sectors.
Uganda's "Ease of Doing Business" rank by the World Bank deteriorated to 132 in 2014 from 126 in the previous year out of the 189 economies.
Implementing reforms in land, taxation, business licensing among other areas would improve the business environment, experts say.