Uganda, South Sudan and the Central African Republic (CAR) have signed a series of bilateral and tripartite agreements to develop cross-border road infrastructure and expand air connectivity.

The agreements have been concluded today, 15th of May at the end of a three-day Tripartite Ministerial Meeting held in Kampala, hosted by Hon. Gen. Edward Katumba Wamala, Uganda’s Minister of Works and Transport. The meeting brought together transport and infrastructure ministers from the three nations to strategize on collaborative infrastructure development and regional trade promotion.

The initiative follows an earlier engagement in March 2025, where Gen. Katumba Wamala led a Ugandan delegation to Bangui, the capital of the Central African Republic, to engage officials on the cross-border infrastructure project. The outcome was the agreement to convene the tripartite meeting in Kampala.

During the tripartite meeting held in Kampala, the officials discussed that the robust road infrastructure development project will commence from Uganda, Kampala-Karuma-Arua-Oraba-Kaya-Yeyi-Juba and/or Kampala-Karuma-Nimule-Juba-Kaya-Yeyi-Juba (Uganda to South Sudan); Juba-Mundri-Maridi-Yambio-Yubo-Ezo-Bambouti-Obo-Sibuti (South Sudan to CAR); and Ezo-Source-Yubu -Bambouti (South Sudan- Central African Republic).

The Ministers held and agreed to a phased project development and a joint mobilization of funding for the long-term undertakings of the project from the development partners to fund the project as a regional trade corridor.

A Tripartite Technical Committee (TTC) was formed composed of technical officials from the Ministries responsible for Transport, Infrastructure, and Public Works, Defense and Security, Foreign Affairs, Internal Affairs, and Solicitor General to conduct a joint inspection of the project on the proposed routes, finalize the road alignment, feasibility studies, and joint implementation framework.

At the sidelines of the Tripartite meeting, the Ministers responsible for Civil Aviation of the Republic of Uganda and Central African Republic concluded a Bilateral Air Service Agreement (BASA) and a Memorandum of Understanding (MOU) on operationalization of the BASA to enhance the aviation connectivity between Uganda and CAR, including planned commencement of Uganda Airlines flights to Central African Republic.

The Ministers expressed appreciation to the visionary leadership of the Heads of State of the Republic of Uganda, South Sudan and Central African Republic as guided on addressing the bottlenecks to infrastructure development and security for connectivity and trade promotion in the region

Uganda’s Minister for Works and Transport, Gen Edward Katumba Wamala, emphasized the importance of the project in fostering economic growth and regional stability.

Representing the Central African Republic, the Minister for Equipment and Public Works; Hon Eric Mathieu ROKOSSE-KAMOT expressed optimism about the collaboration, noting that improved road networks would significantly boost commerce and ease transportation challenges.

South Sudan’s delegation, led by the Minister for Roads and Bridges, Hon. Simon Mijok Mijak, echoed similar sentiments, highlighting the road’s potential to enhance security and economic integration.

Speaking at the event, the Minister for Transport and Civil Aviation of the Central African Republic, Hon. Herbert Gontran DJONO-AHABA observed that a Bilateral Air Service Agreement (BASA) with Uganda, would be very integral in enabling travelers to have easy ways to travel within the region hence reducing travel time.

In attendance were Government Officials and Diplomatic representatives including, Mr. Pius Perry Biribonwoha-the Solicitor General of Uganda, Amb. Brig. Gen. Ronnie Barya-Uganda’s Ambassador to South Sudan, Amb. Farid Kalisa-Uganda’s Ambassador to the Central African Republic, and senior and technical teams from the three countries who witnessed the launch of discussions and agreements that will shape the future of cross-border connectivity, transform transportation across the region, unlock new economic opportunities and strengthen diplomatic ties.

The Ministers have shared insights of the discussions held with President Yoweri Museveni and signed the agreements this afternoon.

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Parliament has passed the Hides and Skins Export Duty [Amendment] Bill, 2025, dropping exemptions that previously allowed the export of glue stock and semi-processed hides and skins without taxation.

Under the new law, all exports of hides and skins, including glue stock will attract a levy of $0.80 per kilogram.

Presenting the Committee report, Amos Kankunda, Chairperson of Parliament’s Finance Committee, noted that the removal of exemptions was prompted by a surge in glue stock exports that had depleted raw materials for local tanneries and hindered value addition efforts.

“The Amendment seeks to enhance availability of raw materials for Uganda’s tannery industry and support local value addition,” he said.

Legislators, however, debated passionately over the classification of “glue stock” products—offcuts of hides processed into a food item known as ponmo for West African markets.

While some Members of Parliament called for the exemption of glue stock to encourage innovation and export diversification, others insisted it should be taxed like any other hide-based product.

“We cannot say someone is exporting hides when they have cooked and packaged them as food. The URA [Uganda Revenue Authority] must assign the appropriate classification,” said Sheema Municipality MP, Dicksons Kateshumbwa.

Attorney General Kiryowa Kiwanuka clarified that the law targets exports classified as hides, not food.

“If they are exporting food, the law does not deal with them. However, if URA is classifying them as hides, then they must pay the levy,” he stated.

Parliament ultimately voted to maintain the tax on all hide-related exports, including glue stock, aligning with the broader national push for industrialisation and local value addition.

Parliament Passes Stamp Duty Amendment to Ease Access to Credit

In the same sitting, Parliament also passed the Stamp Duty [Amendment] Bill, 2025, introducing a new “near-duty” classification and scrapping the longstanding Shs 15,000 duty on agreements and mortgage deeds.

Henry Musasizi, Minister of State for Finance (General Duties), explained that the amendment seeks to reduce the cost burden of formalising legal and credit agreements.

“The bill provides for near-duty for agreements or memorandum of an agreement and a mortgage deed,” he said.

Committee Chairperson Amos Kankunda supported the move, stating that the removal of the Shs 15,000 stamp duty would ease the registration of agreements and encourage formalisation of contracts.

“The Committee recommends that the Shs15,000 stamp duty on agreements or memorandum of an agreement should attract near-duty as proposed,” Kankunda stated.

He added that stamp duties on credit-related instruments have been driving up borrowing costs and discouraging private sector growth.

“To support access to affordable credit and promote business growth, the government proposes near-duty on mortgage deeds and mortgage of a crop,” he said.

This position was also backed by Attorney General Kiryowa Kiwanuka, who said the bill responds to earlier concerns that stamp duty was being charged even on employment appointment letters.

“The issue was to remove the duty on any of those registrable memorandum… now you can have your agreement without duty,” he said.

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The United Nations Development Programme (UNDP) in partnership with the Government of Uganda and Kyambogo University have launched the 2025 Human Development Report (HDR), titled “A Matter of Choice: People and Possibilities in the Age of AI” at Kyambogo University.

The report delivers a sobering global message: after decades of steady gains, human development progress is slowing, and the world is at risk of a development crisis unless decisive action is taken.

Since 1990, UNDP through its flagship Human Development Report (HDR) has challenged conventional thinking about progress by putting people—not economic growth—at the center of development. The 2025 HDR continues this tradition by examining how AI can be shaped to advance rather than undermine human development.

“The 2025 Human Development Report underscores the critical importance of strategic decision-making for Uganda to harness the transformative potential of AI,” said UNDP Resident Representative Ms. Nwanne Vwede-Obahor during the launch. “In alignment with this vision, UNDP remains steadfast in it’s commitment to working alongside stakeholders to support the Government of Uganda in creating an enabling environment for responsible and inclusive AI adoption.”

Ms. Nwanne Vwede-Obahor added “Human development is not predetermined – it is a matter of choice. Let us join forces to shape an inclusive, digital, and AI-powered future that leaves no Ugandan behind.”

Uganda’s HDI shows long-term gains, though inequality persists Uganda’s Human Development Index (HDI) value stands at 0.582, placing the country in the medium human development category and ranking it 157 out of 193 countries and territories. Since 1990, Uganda has made significant progress with a 70.2% increase in HDI, driven by improvements in life expectancy (up by 20.7 years), expected years of schooling (up by 5.8 years), and GNI per capita (up by 158%).

However, inequality remains a persistent challenge. When adjusted for inequality, Uganda’s HDI drops to 0.400, reflecting a 31.3% loss due to disparities in health, education, and income – slightly higher than the Sub-Saharan average but significantly lower than the global average.

Prime Minister Robinnah Nabbanja’s speech, presented by Monica Musenero, Minister for Science, Innovation and Technology said that since adopting the 2030 Agenda for Sustainable Development in 2015, Uganda has been steadfast in its efforts to realize its aspirations. In 2023, Uganda launched an ambitious growth strategy to expand its economy from USD 50 billion to 500 billion by 2040. The 10/4 Growth Strategy is anchored on agro-industrialization, tourism, mineral development, and science, technology, and innovation—what are call the ATMs—to accelerate growth.

 “The Fourth National Development Plan, to be implemented between 2025/26 and 2029/30, is the first of the three five-year NDPs that will deliver this tenfold economic growth. The NDP IV recognizes that human capital development plays a crucial role in unlocking the full potential of individuals and societies, thereby enhancing productivity and the quality of life. It also recognizes that science, technology, and innovation are deep drivers of progress.”

“This report arrives at a fitting moment for Uganda and the world, as we navigate the transformative potential and challenges of artificial intelligence. AI is both a great opportunity and a great responsibility. Uganda’s journey towards human development is one of resilience, experience, and focus. Over the years, we have witnessed significant advancements in various dimensions of human development, as reflected in the Human Development Index.”

“The transition from the low to medium human development category in 2022 was a testament to our collective efforts in improving the wellbeing of our people. While we celebrate our achievements, we must also acknowledge the persistent challenges—particularly inequality and gender disparities. The 31.3% loss in Uganda’s Human Development Index due to inequality serves as a reminder of the work ahead of us.”

“Gender inequality remains a significant concern, and one I am especially passionate about. Uganda’s Gender Inequality Index of 0.524 and ranking of 141 out of 172 reflect this. While we have made strides in empowering women and girls, there’s still much ground to cover to achieve gender equality. We must redouble our efforts to dismantle systemic barriers and create an enabling environment where every individual, regardless of gender, can thrive and contribute to national development.”

“We must not overlook the environmental challenges facing our planet. While Uganda exerts lower environmental pressures than the global average, our greenhouse gas emissions are growing at a high rate of 3.1% per annum. It is incumbent upon us to adopt sustainable practices to mitigate our impact and ensure a prosperous future.”

“This 2025 HDR is important for Uganda because it underscores a critical truth: AI is not just a technological revolution, but a human development crossroads. The report must be contextualized within Uganda’s current social, economic, and political landscape. It is a call to action.”

“Uganda now has its Digital Transformation Framework, which provides a unified direction for ICT development. With support from partners such as UNDP, we have developed the Uganda Digital Vision. This strategy integrates and improves all ICT strategies and plans. We also launched the Digital Transformation Roadmap in 2023 to guide our transition to a digital economy, focusing on infrastructure, e-governance, and innovation.”

“In addition, we have developed a Big Data Strategy to inform policy decisions, particularly in healthcare, agriculture, and climate resilience. Our AI Framework and upcoming National AI Strategy will guide ethical and inclusive AI deployment in key sectors such as health, agriculture, education, and public administration.”

“Government is committed to strategic infrastructure investment, education, and capacity building. We are ensuring equitable access to internet and digital technologies, particularly in underserved and rural areas. We are also working to build digital literacy and AI skills, especially among women, youth, and marginalized populations.”

“Finally, we are establishing monitoring mechanisms to ensure AI governance frameworks uphold ethical standards and human rights. I hope you had fruitful deliberations in contextualizing the findings of this HDR in Uganda’s context. I am happy to note that relevant ministers and government officials actively participated in today’s discussions.”

AI: A game-changer, though only if Uganda chooses wisely The 2025 HDR emphasizes that artificial intelligence (AI) holds transformative potential for human development, though its benefits are not guaranteed. The report cautions that without strategic choices and investment in human capability, AI could deepen inequality.

For countries like Uganda, this represents both a risk and an opportunity. AI solutions must be tailored to Uganda’s specific needs. This includes integrating local languages, embracing cultural diversity, and focusing on augmenting jobs rather than replacing them to boost productivity.

The report reveals stark gender disparities. Uganda’s Gender Development Index (GDI) is 0.908, with female HDI (0.556) trailing behind male HDI (0.612). The Gender Inequality Index (GII) ranks Uganda 141 out of 172 countries, pointing to persistent inequality in education, labour force participation, and political representation.

On the environmental front, Uganda’s Planetary Pressures–Adjusted HDI is 0.569, only slightly lower than its HDI. This relatively small adjustment (2.2%) suggests that Uganda exerts less pressure on the planet than the average Sub-Saharan country, underscoring opportunities for sustainable development.

The report findings point to the need for Uganda to focus on: Building a complementarity economy: Positioning AI as a tool to enhance – not replace – human work. Driving innovation with intent: Ensuring AI serves public good by embedding equity and inclusion in its development. And Investing in capabilities that count: Strengthening education, digital literacy, and access to AI tools.

With a youthful tech-savvy population, ongoing digital expansion, and a strategic Fourth National Development Plan (NDPIV), Uganda is well-positioned to harness AI to accelerate development, with success dependent on making the right choices today.

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Minister of State for General Duties, Hon. Henry Musasizi, has assured Parliament that Uganda’s fiscal position remains sustainable and focused on recovery, despite challenges in revenue performance.

Appearing before the Committee on Budget to discuss the draft estimates of revenue and expenditure for FY 2025/26, Musasizi outlined key priorities including domestic revenue mobilization, development spending, and clearing domestic arrears.

He was accompanied by the Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, and a team of technical officials from the Ministry of Finance, who provided technical support in addressing queries raised by the Committee.

Musasizi admitted that revenue collection has not grown as anticipated under the Charter for Fiscal Responsibility, largely due to the lingering effects of the COVID-19 pandemic on business activity.

“Revenue collection has not increased as projected in the Charter for Fiscal Responsibility due to slow recovery of businesses from effects of Covid-19,” he said.

To support recovery, he added, the government has extended tax relief measures for affected entities. Over the past five years, revenue performance has fluctuated between 13.4% and 14% of GDP.

To improve this outlook, Musasizi said the government is implementing the Domestic Revenue Mobilization Strategy (DRMS) at full scale, with major investments in the Uganda Revenue Authority (URA) to strengthen tax administration and manage exemptions more efficiently.

On public debt, the minister noted that Uganda’s nominal debt stood at 46.80% of GDP in FY 2023/24—below the projected 47.9%.

“Our debt is expected to remain sustainable in FY 2025/26 and over the medium term,” Musasizi told the Committee.

He also revealed that Shs. 18.509 trillion has been allocated under the development budget for projects with high economic return, in line with the Agro-Industrialization, Tourism, Minerals and Oil & Gas Strategy (ATMS) and the government’s ten-fold growth plan.

“The projects to be financed are those that are compliant with the Public Investment Management System (PIMS) framework,” he said.

Turning to domestic arrears, Musasizi disclosed that Shs. 1.4 trillion has been provided in FY 2025/26 as part of a phased plan to clear all categories of arrears.

The Auditor General’s report shows that domestic arrears increased from Shs. 10.5 trillion in FY 2022/23 to Shs. 13.81 trillion in FY 2023/24. However, a significant portion—Shs. 8.313 trillion for Bank of Uganda redemptions—was already catered for in the current FY 2024/25 budget, leaving a remaining stock of Shs. 3.854 trillion.

“At this rate, therefore, we shall be able to clear the remaining stock within three financial years,” Musasizi assured.

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