Uganda, World Bank tighten approval process of development projects

KAMPALA. Finance Minister Henry Musasizi and World Bank Uganda Country Director Qimiao Fan have agreed that government projects should undergo the Public Investment Management System (PIMS) process before they are considered for approval and financing.

The move is intended to improve project preparation, strengthen accountability in the use of public funds and address delays in implementation and absorption of funds.

The agreement was reached on September 23, 2026, during a meeting between Mr Musasizi and Mr Fan at the Ministry of Finance, Planning and Economic Development in Kampala ahead of the 2026 Annual Meetings of the International Monetary Fund and World Bank Group scheduled for October.

PIMS is a government framework used to assess, prioritise and manage public investments before resources are committed, with the aim of ensuring that projects are economically viable, properly prepared and aligned with national development priorities.

Mr Musasizi said the government would prioritise projects that support its development agenda, particularly the standard gauge railway, electricity generation and transmission, irrigation and value addition.

“We are looking at one agenda of efficiency and effectiveness and this will greatly improve with PIMS. This will also cure the challenge of poor absorption of funds. We have to do the right job at every stage so that we see impact on the ground,” Mr Musasizi said.

Mr Fan explained that the World Bank has processes for allocating resources to member countries and urged Uganda to streamline its own procedures to reduce the time taken between project preparation, government approval, negotiations, procurement and implementation.

He also emphasised the need for Uganda to accelerate inclusive economic growth and create jobs for the thousands of young people entering the labour market every year.

The Permanent Secretary and Secretary to the Treasury, Mr Ramathan Ggoobi, called for a balance between fiscal prudence and efficiency in project implementation.

He said implementing agencies and the Development Committee should ensure that projects deliver tangible and sustainable results rather than simply absorbing allocated funds.

The meeting also reviewed progress on a $500 million Development Policy Operation intended to support the government’s Tenfold Growth Strategy.

Officials also discussed projects in the International Development Association (IDA) 21 pipeline, including UgIFT 2.0, the revised INVITE programme and infrastructure development in Greater Kampala.

Uganda’s World Bank-funded portfolio is valued at about $4.62 billion, of which $1.48 billion had been disbursed, according to figures presented during the recent Country Portfolio Performance Review.

The renewed emphasis on PIMS comes as the government seeks to improve the efficiency of public investment and ensure that externally and domestically financed projects translate into measurable development outcomes.