The World Bank has pledged to support Uganda in its efforts to improve the country's investment climate and reduce the cost of doing business. The Bank's managing director, Juan Jos Daboub, said improving infrastructure investments, particularly in transport and energy, is critical for economic development and poverty reduction in Uganda.

Dr Daboub, who is on a working trip to Africa, was in Uganda for two days last week to get a first-hand account of the country's macroeconomic performance over the past 20 years. He was also expected to gain a better understanding of Uganda's opportunities and challenges in implementing its third Poverty Eradication Action Plan. Dr Daboub and President Yoweri Museveni discussed the government's strategy for addressing the country's current power crisis and ensuring sustainable energy supply. "For Uganda to continue on the path to prosperity, it will need to implement an effective and transparent regulatory framework, which will help to attract private investments in the energy sector," said Dr Daboub. During a visit to the Kiira hydropower station and the site for a new hydropower plant near Bujagali Falls, both along the River Nile, Dr Daboub stressed the importance of the power sector in ensuring strong and sustained economic growth.

"Reliable access to power is critical to the running of schools and clinics as well as the businesses that create jobs," said Dr Daboub.


"The World Bank shares the government's view that increasing power generation, including through private sector providers, is a priority for Uganda."

Uganda has, for the past year, battled with the effects of an energy crisis caused by falling water levels that have more than halved the amount of power generated at the country's two hydropower dams at Jinja. The country has been forced to turn to emergency thermal power using expensive imported diesel, forcing a doubling of electricity tariffs with more increases expected in the coming months.

A complete solution to the energy crisis is not expected until at least 2010, when a new dam at Bujagali, designed to produce 200MW, is expected to come on line. The World Bank is helping finance the construction of Bujagali and has also provided finance for emergency thermal generation capacity to mitigate the effects of the power crisis. During a visit to a boarding primary school in the suburbs of Kampala, Dr Daboub emphasised the importance of education for development and poverty reduction. "I am pleased to learn that about 90 per cent of the primary school-age children are enrolled in school. A solid education is the bedrock for a better future for the next generation of Ugandans," he said.

Dr Daboub also met with key government officials and representatives from the private sector, civil society and the donor community. In his meetings, he commended Uganda for maintaining macroeconomic stability and steady growth and reiterated the World Bank Group's commitment to supporting the Poverty Eradication Action Plan in conjunction with other development partners, particularly through the Uganda Joint Assistance Strategy. Discussions with government officials and development partners also focused on other areas critical to achieving the poverty eradication initiative and the Millennium Development Goals. While visiting a flower farm supported by the World Bank Group, Dr Daboub stressed the important role of the private sector in creating jobs and opportunities for the poor. "Having 300 people working on this farm is the most effective way to lift their families out of poverty," he said.