About Uganda’s Competitiveness Investment Climate Strategy

Over the last 15 years, Government of Uganda has implemented policies and programmes aimed at improving her economic competitiveness. Competitiveness is an important component for and an indicator of economic growth. The second National Development Plan (NDP II) has recognized competitiveness as an important cross-cutting issue that traverses most of the key economic sectors including ICT, tourism, agriculture, infrastructure and trade and social development




About Uganda’s Competitiveness Investment Climate Strategy

Over the last 15 years, Government of Uganda has implemented policies and programmes aimed at improving her economic competitiveness. Competitiveness is an important component for and an indicator of economic growth. The second National Development Plan (NDP II) has recognized competitiveness as an important cross-cutting issue that traverses most of the key economic sectors including ICT, tourism, agriculture, infrastructure and trade and social development Pursuant to this aspiration, Uganda in 2000 launched a five year Medium Term Competitiveness Strategy (MTCS) that ended in 2005. The MTCS’s main focus was on institutional reforms especially in the energy, financial sector and export sectors of the economy. In 2006, Government of Uganda launched the first five-year Competitiveness Investment Climate Strategy (CICS-1) ending in 2010. The strategy aimed at triggering productivity in the sectors of agriculture, manufacturing, tourism, improving business environment and improving Uganda’s competitiveness in the regional context.
Inspite of the implementation of the Medium Term Competitiveness Strategy (MTCS) (2000-2005); and CICS-1 (2006-2010), Uganda’s level of competitiveness did not improve to desired levels. Uganda’s performance fell on account of challenges in starting a business, getting electricity, access to credit, dealing with construction permits and trading across borders.
Government launched the second CICS II to sustain achievements under CICS I (2011-2015) and re-shape the approach towards improving business and investment climate overall. While the predecessor strategies contributed to improving the business environment, the NDPI identified key binding constraints that CICSII sought to address. The priority of CICS II focused on addressing firm level constraints.
CICS operates at two levels – at the strategic level where it advocates and promotes public sector reforms to improve the sector’s responsiveness to the needs of the private sector and at the institutional level through a Secretariat that functions as a hub for advocacy for relevant economic reforms through private sector organisations and the civil society; information management; and general oversight of implementation of cross-sectoral competitiveness initiatives such as infrastructure development, public sector modernization (in the context of competitiveness and private sector growth) and market access (including standards and elimination of non-tariff barriers [NTBs].

Objectives of the Second Competitiveness Investment Climate Strategy (CICS II)

Rather than spreading resources thinly across many sectors, a value chain approach was to be employed for the selected high impact clusters. CICS II intended to promote private sector competitiveness by focusing resources on priority clusters to maximize impact. The strategy also called for a shift in mindsets to drive implementation of identified activities, strengthening the business environment and to drive focused execution through ownership. This holistic approach was to ensure that appropriate investments are made in the right sectors so as to optimize overall private sector performance and increase firm-level capabilities. CICSII contributes to the enhancement of productivity, competitiveness and incomes through strengthening Uganda’s productive sectors, improving domestic business environment and the country’s international competitiveness.




Objectives of the Second Competitiveness Investment Climate Strategy (CICS II)

Rather than spreading resources thinly across many sectors, a value chain approach was to be employed for the selected high impact clusters. CICS II intended to promote private sector competitiveness by focusing resources on priority clusters to maximize impact. The strategy also called for a shift in mindsets to drive implementation of identified activities, strengthening the business environment and to drive focused execution through ownership. This holistic approach was to ensure that appropriate investments are made in the right sectors so as to optimize overall private sector performance and increase firm-level capabilities. CICSII contributes to the enhancement of productivity, competitiveness and incomes through strengthening Uganda’s productive sectors, improving domestic business environment and the country’s international competitiveness.

CICSII’s is to work toward achieving the following five goals;

i. Unleashing priority growth clusters;
ii. Strengthening Uganda’s enabling environment;
iii. Increasing firm-level capabilities;
iv. Fostering competitive mindsets; and
v. Driving focused execution through ownership.

The CICS Secretariat placed under the Ministry of Finance, Planning and Economic Development (MoFPED) provides the Institutional mechanism for coordinating, monitoring and facilitating the promotion of Uganda’s competitiveness and business environment. CICS secretariat has been responsible for drafting a series of budget priorities and position papers for consideration by the CICS Steering Committee and has participated in the budget consultative processes and contributed to influencing resource allocation relating to a number of competitiveness priorities in the national budget. CICS Secretariat also conducted a study on the impact of power shortages and high tariffs on businesses and the results of the study were successfully used to support advocacy efforts of the Private Sector Foundation Uganda (PSFU) to secure from government tax exemption on diesel used in generators servicing small and medium enterprises (SMEs) and large industries.