Technical Assistance to Uganda’s Ministry of Finance in the allocation of Covid-19 economic stimulus support

Covid 19
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Situation

Soon after the emergence of Covid-19 in early 2020, the Government of Uganda (GOU), through the Ministry of Finance, Planning and Economic Development (MoFPED), established a Covid-19 Economic Response Unit (ERU) to coordinate the GOU’s “Whole of Government” response. This response aimed to mitigate the immediate negative socioeconomic impacts of Covid-19 on the most affected sectors/industries. It was also aimed at supporting the most vulnerable segments of the population.

The ERU was tasked with creating an operational structure to coordinate sector inputs, analyze emerging proposals for addressing the challenge, and determine the impact of Covid-19 on the wider economy. The ERU was also required to develop an effective decision-making mechanism to respond to the crisis efficiently and enable rapid actions and responses.

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Strategy, Data & Insights
Public Policy
Implementation Services
Cities & Infrastructure
Gender Equity & Inclusion
Manufacturing & Consumer Goods
Economic Growth & Trade
Engagement

Based on its role in implementing the Cities and Infrastructure for Growth program, ORI was invited by MoFPED to provide strategic expertise and critical inputs to the ERU, which worked through committees.

Specifically, we supported the Technical Committee of the ERU by:

  • Compiling and analyzing various submissions by sector actors on the likely impacts of Covid-19 and evaluating proposals received for assistance.
  • Conducting in-depth research and analysis of the negative impact of Covid-19 on the Ugandan economy and specifically on the most vulnerable households.
  • Projecting the amount of financing required to tackle the challenges of the pandemic and designing tools for tracking the evolving nature of the need—including areas that may require special assistance.
  • Providing practical support to the Technical Committee, for example, planning short-term employment opportunities for youth and women. This included identifying short-term opportunities for earning income by the poorest and the most vulnerable segments of the urban population via, e.g., cash-for-work programs, and building tools for program monitoring and evaluation.
  • Examining proposals from various government ministries and agencies for stimulus support, and recommending the method and quantity of support.
  • Identifying and evaluating the effectiveness of various options to deploy fiscal stimulus by sector priorities—and making recommendations for action.
  • Assessing categories of stakeholders, prioritized to benefit from each intervention and developing work plans to guide effective implementation.
  • Advising the Kampala Capital City Authority (KCCA) and associated municipal councils regarding best approaches for distributing assistance to local areas.
Outcomes
  • MoFPED used our work's findings and recommendations to better target sectors, agencies, firms, and organizations for the deployment of the stimulus packages.
  • MoFPED/Government of Uganda communicated to the public a sound plan for responding to Covid-19 economic shocks.
  • Sectors selected demonstrated capacity and scope to deliver the highest impact for economic recovery and growth of jobs, especially for women, youth, and the most vulnerable.
  • The Government of Uganda applied ERU’s plans to target work-for-cash programs for the poorest and the most vulnerable, working alongside the KCCA and various municipalities.