KAMPALA — The World Bank has launched an Implementation Completion and Results Report (ICR) mission to review the performance of the Uganda Intergovernmental Fiscal Transfers Programme for Results (UGIFT 1.0) alongside the Public Investment Management Plus (PIM Plus) operation.
The mission comes at a critical transition point for UGIFT 1.0, which officially closed on December 31, 2025, and is intended to assess the programme's achievements, evaluate development outcomes and draw lessons to guide the design of its successor, UGIFT 2.0.
UGIFT has been central to strengthening Uganda's fiscal decentralisation framework by improving the adequacy, predictability and transparency of intergovernmental fiscal transfers.
The programme has played a significant role in supporting financing and service delivery in key social sectors such as education, health and water services at local government level.
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The ongoing review will undertake a comprehensive evaluation of the programme's performance against its intended results, with particular focus on improvements in service delivery, institutional capacity strengthening and fiscal discipline.
Technical discussions during the mission are also expected to help shape the architecture of UGIFT 2.0 to ensure continuity of reforms while aligning the programme with Uganda's evolving national development priorities.
At the same time, the PIM Plus operation is being reviewed to assess progress towards programme effectiveness.
The initiative is designed to strengthen Uganda's public investment management systems by improving project appraisal, selection, budgeting and execution processes to ensure better value for money in public spending.
Speaking during the kick-off meeting held at the Ministry of Finance, Planning and Economic Development, Acting Director of Budget Hannington Ashaba emphasised the strategic importance of the two programmes within the broader Public Finance Management Reform Strategy 2025-2030.
"These programmes form part of a wider reform agenda aimed at driving sustained improvements in service delivery," Ashaba said.
"Local governments are the ultimate beneficiaries and implementers of these reforms. Their perspectives, experiences and concerns must continue to be carefully listened to and duly considered."
Government officials say the reforms reinforce Uganda's focus on decentralised service delivery as a pathway to human capital development and inclusive economic growth.
By directing resources to local governments and linking funding to performance indicators, UGIFT has aimed to strengthen accountability while addressing infrastructure gaps in schools, health facilities and water systems.
Representing the World Bank, Barbara Magezi stressed the importance of completing all outstanding activities under UGIFT 1.0 in line with the agreed closure action plan.
"Government should reflect on the issues discussed around the closure action plan for UGIFT 1.0. All activities that were started must be completed," Magezi said.
She also noted that the Bank is keen to understand how the national budget for the 2026/2027 financial year is structured to sustain and institutionalise the gains achieved under UGIFT 1.0.
Analysts say this signals a gradual shift from externally driven reform momentum toward domestically anchored financing mechanisms capable of preserving programme outcomes.
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Looking ahead, UGIFT 2.0 is expected to place greater emphasis on human capital development, particularly through initiatives linked to job creation and local economic development.
The focus aligns with Uganda's broader macroeconomic strategy of translating social sector investments into productivity gains and employment growth.
Officials say the ICR mission provides policymakers and development partners with an opportunity not only to validate performance metrics but also to recalibrate fiscal transfer systems and investment management frameworks in response to emerging economic realities.
As Uganda advances its Public Finance Management Reform Strategy 2025-2030, the integration of improved fiscal transfers with stronger public investment systems is expected to play a key role in ensuring that public spending delivers measurable development outcomes at the grassroots level.
