Unlocking Private Capital: Uganda’s Path to Sustainable Development

The High-Level Policy Dialogue was a timely and strategic conversation as the country prepares for the 4th International Conference on Financing for Development (FfD4) in Seville.

Under the leadership of Office of the Prime Minister and UN Resident Coordinator, the dialogue was convened by the Ministry of Finance, Planning and Economic Development together with the Embassy of the Netherlands as the co-convener. The dialogue brought together government officials, International Financial Corporation (IFC), East Africa Venture Capital Association, private financial institutions, UN agencies, and development partners to explore how Uganda can unlock the full potential of private investment to meet its development ambitions.

“Uganda has grown into a $61.3 billion economy and aspires to reach $500 billion by 2040. That is bold—but achievable if we sustain growth and mobilize private capital effectively,” said Moses Kaggwa, Director of Economic Affairs, Ministry of Finance, Planning and Economic Development.

With 70% of Uganda’s fourth National Development Plan (NDP IV) expected to be financed by the Government, and the remaining 30% by private sector, inclusive and deliberate strategies are essential to bridge the gap between available capital and those who need it most—especially Small and Medium Enterprises, local entrepreneurs, and farmers.

“Today’s dialogue is not just a pre-Seville milestone—it is the foundation of a new financing ecosystem that connects Uganda’s potential with innovative capital solutions,” said Leonard Zulu, UN Resident Coordinator in Uganda.

During the high-level plenary session, participants reflected on the pressing need to bridge the gap between capital supply and demand in Uganda. Speakers emphasized that while private capital is available, the pipeline of investment-ready enterprises remains thin, especially among micro and small businesses that dominate the economy. A recurring call was made to scale up business development services, strengthen financial intermediation, and adopt inclusive financing models that respond to local realities.

“We need to reach the smallholder farmers who are the backbone of our trade flows—from coffee to dairy to fish. That’s where value is created,” one speaker noted.

The session also called for bolder reforms in Uganda’s credit rating narrative, more structured public-private dialogue, and innovation in leveraging diaspora and domestic capital to support long-term growth.

Deputy Ambassador Joost van Ettro of the Netherlands emphasized the importance of building practical pathways for access and inclusion: “Private sector actors are calling for access to finance, while financial institutions are seeking bankable proposals. Bridging that ‘missing middle’ is critical to moving capital where it matters most.”

The dialogue reflected strong alignment between Uganda’s national priorities—agro-industrialization, tourism, mineral development, and innovation—and the opportunities for private sector engagement. Blended finance was highlighted as a key instrument to reduce capital costs and scale impact.

The panel discussion, chaired by Mohamed El Ghazaly, IFAD Country Director for Uganda, delivered bold insights on unlocking sustainable investment. From lowering remittance costs and boosting diaspora investment, to scaling up partnerships with smallholder farmers and expanding business development services, the discussion called for urgent, home-grown solutions.

Participants emphasized that Uganda must not only prepare for global platforms like FfD4 in Seville, but also commit to reforms that attract private capital, empower local entrepreneurs, and promote inclusive growth.

As Team Uganda prepares for Seville, key recommendations include:

• Advocate for a change in the low credit rating and high costs of borrowing for Uganda, requesting to look at the African context differently given the good growth registered in many of its countries.
• Lower remittance costs and create incentives for diaspora investment.
• Enhance Uganda’s branding and increase external marketing efforts, to depict it as a suitable destination for private capital investment.
• Consider diverse, innovative, and low-collateral instruments, such as patient capital, venture capital, and blended finance, to support the private sector.
• Strengthen public-private partnerships in agriculture to integrate smallholder farmers.
• Invest in business development services (BDS) and research and development (R&D).
• Reform regulatory systems to improve the national and global framework for a better investment climate.
• Promote a unified national voice in international engagements.
• Ensure follow-up and implementation of commitments made at Seville.

The dialogue reminds us that international conferences are critical checkpoints—but the real work begins afterwards. With continued collaboration, bold leadership, and an all-of-society approach, Uganda is ready to turn its financing ambitions into meaningful, inclusive development.