Multi Donor Trust fund for productive employment in Uganda

In recent years, Sweden has played a role in strengthening labor market analyzes and contributed to a dialogue on new and collective initiatives to address labor market constraints in Uganda. The proposed MDTF, brings together the efforts of development partners (WB, UK, Netherlands and potential others) and the Ugandan government (through the Ministry of Finance, planning and Economic Development – MoFPED) to jointly contribute to large-scale employment and structural and economic transformation of the Ugandan economy. It is not excluded that current donors or new donors will add additional funds at a later stage. The WB is Sweden's agreement party and is administratively responsible for the program. The WB, in turn, has signed agreements with MoFPED, which have been closely involved in the planning and design of the program. The MoFPED will act as a liaison with other government agencies. The program will, as far as possible, be implemented through national institutions/ authorities, research institutions, local business associations, etc., with the aim of building institutional capacity. The fact that the Ugandan government is involved in, and have the ownership of, the program is absolutely crucial to achieving results in the current context. No funds will be channeled directly from WB to the Ugandan Government. The WB has selected the Private Sector Foundation Uganda (PSFU) for the implementation of the program and the Bank of Uganda (BoU) for handling the funds for each component through a so-called designated account (DA), intended only for the MDTF window 3. The PSFU is Uganda's leading body for the private sector sector and is responsible for the RE activities (Recipient Executed activities). The MDTF will be implemented together with the Investment for project Industrial Transformation and Employment (INVITE), funded by International Development Association (IDA). This part will consist of a loan component (96 MUSD) and grant component (104 MUSD), totaling USD 200 million. The MDTF will contribute to a more efficient use of the IDA contribution through advice to, and capacity development of, implementing institutions. The MDTF and IDA contribution will thus have a mutually reinforcing effect, which is of great importance for the results of the program and the catalytic effects it hopes to achieve. The objective of the MDTF is to create formal jobs in sectors with growth potential. It will contribute to poverty reduction by enabling increased employment and income for poor households. The primary target groups are underemployed, unemployed, unpaid workers, self-employed, women and refugees with limited access to productive employment. The transition from low productivity to higher productivity in these target groups will contribute to higher disposable income and improved human capital over time. The program will collaborate with small and medium-sized companies but also larger companies operating in export-oriented sectors with growth potential. It is thus potential growth and employment opportunities that will lead to investments. However, the agricultural sector (and the agricultural industry) will be given priority due to the number of poor people working in agriculture, as well as the importance of agriculture for inclusive economic development, poverty reduction and economic transformation. Particular attention will also be paid to women's role in business and women led businesses. The direct beneficiaries of the program are: 140,000 small and medium-sized enterprises, of which 40,000 are expected to be women-led micro-enterprises, 120,000 refugees and institutions and government agencies. Through multiplier effects, the WB estimates that the program will secure 530,000 jobs and create more than 200,000 new jobs. Geographically, the program will seek to spread the development from the existing southern growth corridor to two new regional corridors.