Uganda is entering a pivotal decade in its development journey, with a youthful population, abundant natural resources, and an economy poised for significant expansion, the country stands on the threshold of transformative growth.
Recognising this potential, the World Bank Group (WBG) Board of Executive Directors has endorsed a new Country Partnership for Uganda covering Fiscal Years 2026-2035.
The 10-year strategy is designed to support Uganda’s ambition of becoming a modern, prosperous, and competitive upper-middle-income country by 2040, in line with Uganda Vision 2040 and the Fourth National Development Plan (NDP IV). At the heart of the framework lies a powerful objective: creating more and better jobs through private sector-led economic transformation.
Jobs
Every year, between 600,000 and 700,000 young Ugandans enter the labour market. While this presents a significant challenge, it also offers a tremendous opportunity. The partnership recognises that productive employment remains the most effective pathway out of poverty and the strongest foundation for shared prosperity.
Despite economic growth averaging 4.5 percent annually over the last 15 years and the economy nearly doubling in size, many Ugandans remain trapped in low-productivity and informal employment. Poverty reduction has been slower than desired, underscoring the need for structural transformation that goes beyond growth statistics.
With commercial oil production expected to boost economic growth to above 6.5 percent in the medium term, Uganda has an opportunity to translate its economic gains into meaningful improvements in living standards and employment outcomes.
Harnessing extraordinary assets
Uganda’s development ambitions are underpinned by remarkable strengths. The country possesses vast arable land, substantial mineral and oil reserves, rich biodiversity, and one of the youngest populations in the world.
Dr Francisca Ayodeji (Ayo) Akala, World Bank country manager for Uganda says: ‘Uganda has extraordinary assets: a young population full of potential, abundant natural resources, and a government committed to long-term transformation. The CPF is our commitment to walk alongside Uganda over the next decade by investing in its people, infrastructure, and institutions that will power prosperity and translate growth into jobs and better living standards.’
Four pillars
The Country Partnership Framework is based on four mutually reinforcing outcomes that will guide World Bank Group support over the next decade: Strengthened Economic Governance.
The WBG officials argue that strong institutions, sound economic management, and transparent public finances are critical for creating a favourable environment for private investment.
As such, the CPF will support reforms aimed at increasing domestic revenue mobilisation, improving public expenditure efficiency, strengthening public investment management, and ensuring prudent management of future oil revenues.
A key target is to increase non-oil tax revenues from 13.5 percent to 18 percent of Gross Domestic Product (GDP), helping create greater fiscal space for investments in infrastructure, education, healthcare, and social services.
Human capital
Human capital development is essential for sustained economic growth and job creation. Yet Uganda’s Human Capital Index remains below regional and global averages.
Under the Country Partnership Framework (CPF), the World Bank Group will support the delivery of quality health, nutrition, and population services to 22 million people, while helping 10 million students gain improved education and skills. The programme will strengthen health and education systems through enhanced financing, governance, infrastructure, and digital solutions. It will also expand access to essential services for underserved communities, including refugees, women, and other vulnerable populations.
Better connected communities
Infrastructure remains one of the most important enablers of economic transformation. Although Uganda has significantly expanded electricity generation and road networks over the years, access and reliability challenges continue to constrain productivity and competitiveness.
The CPF aims to double energy access from 25 million people in 2025 to 50 million people by 2035. Improve sustainable transport infrastructure for 20 million beneficiaries. It also hopes to expand digital connectivity and promote digital literacy, strengthen regional integration through multi-modal transport corridors linking production areas, cities, and markets.
Investments in energy, transport, and digital infrastructure are expected to lower business costs, improve market access, and create employment opportunities across the country.
A more productive private sector
The private sector is expected to be the primary engine of job creation under the new framework. Currently, businesses face numerous constraints, including limited access to affordable finance, cumbersome regulations, weak contract enforcement, and inadequate infrastructure.
To address these barriers, the CPF will focus on: Expanding financial inclusion to 14 million people and businesses. Supporting small and medium enterprises (SMEs). Strengthening agribusiness, manufacturing, and tourism. Promoting secure land tenure systems. Expanding access to credit for women, youth, and rural entrepreneurs.
Through initiatives such as AgriConnect, the framework will support climate-smart agriculture, irrigation, technology adoption, agro-processing, and stronger market linkages.
One World Bank Group Approach
A defining feature of the new Country Partnership Framework (CPF) is its ‘One World Bank Group’ approach, which brings together the full range of the institution’s resources and expertise. This includes financing from the International Development Association (IDA), investments and advisory services from the International Finance Corporation (IFC), and political risk insurance and credit enhancement guarantees from the Multilateral Investment Guarantee Agency (MIGA).
Together, these instruments will increase investments in key productive sectors, while MIGA will expand guarantees that reduce investment risks and encourage foreign direct investment.
Ambitious targets
Over the CPF period, the World Bank Group intends to mobilise significant resources and deliver measurable outcomes in Uganda, including: 50 million people with access to electricity by 2035. It will see 22 million people benefiting from health and nutrition services, 10 million learners supported with improved education and skills. 20 million people benefiting from improved transport infrastructure.
The others are 14 million people and businesses gaining access to financial services. A 100 percent increase in agricultural yields across targeted value chains.
Financially, the CPF envisions approximately $2 billion in lending per three-year IDA cycle, building on an existing portfolio exceeding $4 billion.
Additionally, the strategy seeks to catalyse up to $1.3 billion in private investment and mobilise a further $2.5 billion from private capital markets.
During the IMF/World Bank Spring Meetings in Washington, D.C., Uganda’s delegation met with World Bank Vice President for Africa, Dr Ndiame Diop, to discuss the country’s economic outlook and implementation of the World Bank portfolio.
Uganda’s economy continues to demonstrate resilience despite global challenges, with growth projected between 6.5 and 7 percent in the current financial year and expected to reach double digits over the medium term.
Uganda’s World Bank portfolio has expanded from $3.9 billion in March 2025 to $4.74 billion, supporting 18 projects and programmes across various sectors.
The government also highlighted strategic priorities requiring continued support, including the Standard Gauge Railway, hydropower generation, urban infrastructure, transmission networks, industrial park development, and expanded access to private sector financing.
Looking ahead
The FY26-FY35 Partnership marks a significant evolution in the relationship between Uganda and the World Bank Group.
By prioritising economic governance, human capital, infrastructure, and private sector development, the partnership seeks to ensure that Uganda’s growth translates into meaningful opportunities for its people.
As Uganda pursues its ambitious vision of becoming an upper-middle-income country by 2040, the success of this partnership will be measured by one outcome above all others: the creation of millions of productive, better-paying jobs that improve livelihoods and drive inclusive prosperity across the nation.