PSFU asks govt to address delays in paying domestic arrears

Private Sector Foundation Uganda (PSFU) has asked government to ensure that electricity costs are reduced in the 2025/26 financial to improve competitiveness.
PSFU also wants government to ensure that the country has adequate fuel reserves to address transport cost shocks that continue to present challenges for the economy.
The proposals form some of the critical issues that PSFU wants government to include in the 2025/26 budget.  
Other proposals include creating a dedicated fund for the creative sector to drive innovation and job creation, improving trade facilitation infrastructure such as investing in cold chains and cargo consolidation centers, and addressing delays in paying domestic arrears.
The proposals are part of a position paper that PSFU presented during the budget conference for the 2025/26 financial year.
While presenting the paper, Ms Damli Ssali, the PSFU chief programmes and projects officer, said: “By investing strategically in the [above] priority areas, we can unleash the full potential of Uganda’s private sector and accelerate our progress,” noting that all stakeholders including government, the private sector and development partners must work towards creating an enabling environment that supports business growth, innovation, and job creation.
PSFU also wants government to prioritise investment in agriculture, tourism and mineral development, science, technology, and innovation, noting that in the previous financial year, the agriculture sector had showcased notable growth facilitated by favorable weather conditions and initiatives such as the Agricultural Credit Facility.
However, Ms Ssali noted that the alarming import bills for agricultural seeds needed to be addressed by prioritising funding for domestic seed production and investment in irrigation systems to enhance productivity and resilience to climate change.
PSFU also indicated that in the realm of tourism, they had observed a remarkable rebound with international arrivals increasing by 56 percent in 2023 with tourism receipts surging from $736m to $1b.
However, Ms Ssali said there was need to enhance tourism-related infrastructure with the view of ensuring a seamless experience for visitors as well as increasing investment in the mineral development sector, which has since 2022 witnessed considerable growth but continues to experience challenges due to delayed formalisation of artisanal and small- scale mining activities.
PSFU also asked government to invest in science, technology, and innovation, which has emerged as a crucial pillar for Uganda’s economic growth, presently contributing 9 percent to the country’s gross domestic product.
“Nevertheless, it is imperative that we expedite our plans to enhance digital infrastructure, targeting last-mile connectivity. With an estimated potential revenue of over $400m in e-commerce by 2025, the fiscal policies should prioritize investment in digital platforms, incubation hubs, and local ICT innovations,” Ms Ssali said.
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