[{"bbox": [85, 153, 324, 186], "category": "Section-header", "text": "# 2 RATIONALE"}, {"bbox": [85, 219, 235, 246], "category": "Section-header", "text": "## 2.1 Context"}, {"bbox": [96, 265, 1127, 399], "category": "Text", "text": "After a tense post-electoral period, Uganda has returned to relative calm, but underlying challenges remain: high population growth, insufficient investments in social sectors, high unemployment and pressure on natural resources. Uganda was ranked 126th out of 160 countries on the UNDP's Gender Inequality Index for 2017. Its rank on the 2018 World Economic Forum's Global Gender Gap Index (GGGI) of 43rd among 149 countries moved up two positions higher from its 2017 position of 45th out of 144 countries³."}, {"bbox": [96, 424, 1133, 505], "category": "Text", "text": "The Covid-19 pandemic has exacerbated socio-economic problems, increasing poverty and inequalities. The lack of prospects for women and youth is a key driver for conflict. There is shrinking space for civil society organisations (CSOs), human rights defenders and environmental activists."}, {"bbox": [96, 530, 1133, 691], "category": "Text", "text": "While the economic situation is improving, a stop-start recovery is expected. Government's fiscal space has narrowed and the growth forecast for the financial year 2022/2023 was revised from 4.2% to 3.8%. Public debt saw a sharp rise, leading to a shift from low to moderate risk of debt distress. From the perspective of financial execution, Uganda has a strong track-record in absorbing EU development assistance, channelled through a mix of modalities and implementing partners. Recent months have seen an increasing trend of centralisation of power at the highest level, which paralyses decision-making by line ministries and creates bottlenecks and delays."}, {"bbox": [96, 715, 1133, 849], "category": "Text", "text": "The MIP for Uganda focusses on three priority areas: (i) Green and climate transition; (ii) Sustainable and inclusive growth and jobs; and (iii) Governance and social inclusion. The emphasis of the AAP 2022 is on three key policy areas of the MIP – Green Deal (Actions: Partnering for Forests, Climate Finance, Nexus WASH approach), the Jobs and Growth agenda (Actions: SB4U, Study facility, Rural electrification), and the Social inclusion dimension of the MIP priority area 3 (Action: G4DU)."}, {"bbox": [96, 874, 1133, 1035], "category": "Text", "text": "AAP 2022 will allow to engage with the GoU in a number of sectors that are crucial for the country's socio-economic recovery. The EU will seek to engage with champions within the Government, private sector and civil society, who are committed and keen to promote an ambitious and positive agenda with the EU. By exploring the possibilities of combining EU and EU Member States (MS) funding and pooling the different actions together under the three policy areas, Team Europe will position itself as an important player and will increase its capacity to influence policy dialogue and achieve impact."}, {"bbox": [96, 1060, 1133, 1221], "category": "Text", "text": "AAP 2022 builds on the significant blending portfolio in Uganda. A more medium-term pipeline is being prepared with the Government, AFD, KfW and EIB, including potential guarantee schemes under the EFSD+. In support of the three pillars, initiatives to mobilise EFSD+ guarantees and blending will be pursued more intensively to foster private investment in the country. Further mobilisation will be sought via EFSD ongoing guarantee programs, led by several European DFIs (e.g. AFD, FMO, KfW) targeting micro-, small- and medium-sized enterprises (MSMEs), sustainable cities, energy and connectivity."}, {"bbox": [85, 1234, 340, 1264], "category": "Section-header", "text": "## 2.2 Problem Analysis"}, {"bbox": [96, 1283, 1133, 1417], "category": "Text", "text": "Short problem analysis: Development of the interventions under MIP 2021-2027 is required in the areas of Smart green cities as part Priority Area 1 (Green and Climate Transition) and sustainable investments, economic enablers and connectivity as part of Priority Area 2 (Sustainable and Inclusive Growth and Jobs). Identification, formulation, scoping/feasibility and/or any other preparatory studies of relevance need to be undertaken to support a pipeline of investments in sustainable infrastructure, through blending and EFSD+ mechanisms."}, {"bbox": [96, 1443, 1133, 1547], "category": "Text", "text": "The thematic areas contemplated include tentatively: digitalisation, renewable energy, green industrialisation, sustainable mining value chains, sustainable mobility, natural resources management, waste management and water & sanitation, environmental sustainability and climate action, and gender mainstreaming within the mentioned areas."}, {"bbox": [85, 1597, 1015, 1646], "category": "Footnote", "text": "³ Country Gender Profile, Uganda, IsDB, 2019, https://www.isdb.org/sites/default/files/media/documents/2020-09/Uganda%20Gender.pdf"}, {"bbox": [1037, 1680, 1143, 1705], "category": "Page-footer", "text": "Page 4 of 13"}]