Assessing World Bank's Uganda report on ECD & human capital development

The World Bank's 2025 Economic Update for Uganda has shed light on the importance of investing in Early Childhood Development (ECD) to enhance human capital and drive sustainable economic growth in the long run. Wilson Manishimwe, a Policy Analyst at Corporate Image Limited, shared insights on the implications of the report and the broader economic landscape of Uganda. Manishimwe emphasized the significance of investing in ECD to empower individuals with skills that can contribute significantly to the overall economy. According to the World Bank update, Uganda's economy is projected to grow at a rate of 6.2% in the 2024-2025 financial year, slightly lower than the IMF's forecast of 7%. The key drivers of this growth include agro-industrialization, investments in tourism, and the oil and gas sector. Despite the optimistic outlook, the World Bank has also stressed the need for Uganda to strike a balance between fiscal sustainability and continued investments in infrastructure and social services. Manishimwe highlighted the government's historical focus on sectors like agriculture, infrastructure, and energy as key areas that align with the World Bank's recommendations for sustained growth. He expressed confidence in Uganda's economic prospects, especially with the expected boost from the upcoming oil and gas production. The government's efforts to leverage new oil exploration licenses are not only expected to fuel economic growth but also improve energy security for domestic consumption. Energy infrastructure investments play a crucial role in lowering power tariffs and reducing the cost of goods, ultimately benefiting consumers. However, recent power outages in Uganda have exposed vulnerabilities in the country's energy infrastructure, underscoring the importance of continuous improvements in this sector. In terms of government spending and borrowing, Manishimwe raised concerns about Uganda's high public debt, which currently stands at over 100 trillion Ugandan shillings, exceeding 50% of the GDP. He advised the government to prioritize long-term and low-interest loans to ensure debt sustainability, along with reducing unnecessary expenditures and increasing the absorption of quality funds. By adopting these strategies, Uganda can work towards a more stable financial position and support key sectors like infrastructure and social services. Overall, with a focus on ECD investments and energy infrastructure development, Uganda's economic future appears promising, paving the way for sustainable growth and improved human capital development.