Business & Management
Researchers call for more Govt. intervention to boost domestic tourism
Following a study on “Promoting Domestic Tourism in Uganda, An Assessment of Economic Significance and Opportunities for Tourism Stakeholders in Uganda” researchers have advised the government to increase funding to the tourism sector in an effort to promote and grow domestic tourism. One of the biggest hindrances to domestic tourism, as noted in the study, is poverty. Many Ugandans cited the low income levels for failure to undertake domestic tourism. The researchers noted that with government support, locals would be able to get subsidy rates to allow them to travel and see the beauty that Uganda has to offer.
While presenting the study findings, Dr. Peter Babyenda noted that domestic tourism has been neglected both as an area of research and as an avenue for economic growth and development. The neglect is largely due to the popular assumption that tourists invariably originate from distant lands and other cultures, with the consequence that domestic travelers are sometimes discounted as tourists. Although the importance of developing domestic tourism has been recognized, the absence of a comprehensive enabling environment has left this segment of the market lagging. According to the researchers, in Uganda, tourism investment targets mainly the affluent tourists from western countries, and domestic tourism only comes up as a passing concern when international tourism is on the decline, especially during low seasons, and threats to international tourism, especially epidemic disease outbreaks and global economic recessions. However, domestic tourism has been gaining momentum, with the Uganda Tourism Board launching marketing campaigns aimed at attracting Ugandans to take up domestic tourism. Whereas Ugandans have limited purchasing power, campaigns urging tour operators and hotels to reduce rates for domestic travelers to encourage them to take up holidays during the low season are paying dividends. However, despite such initiatives, there are few clear studies that address why domestic tourism is low, with little complete research being done on what contributes to domestic tourism’s presence in the country. Therefore, the present study not only sought to explore the factors that hinder Ugandans from participating in domestic tourism but also sought to provide a framework on which domestic tourism policies and promotional tools can be founded. It was also intended to suggest measures to stakeholders in the sector to develop domestic tourism.
The findings indicate that the majority (62.2%) of Ugandans have not toured because tourism is considered costly, the majority of them have low incomes (poor), and they do not have enough time to tour, especially those who are employed. Other hindrances include inadequate information about the tourism sites, what is offered, and the costs involved. The results further show that improving tourism roads, subsidizing the sector in terms of costs, and increasing domestic advertising could increase their probability of touring domestically. Having specific packages for Ugandans, East Africans, and the rest of the world is another key factor in promoting domestic tourism. We can take an example of similar programs from Kenya: Tembeya Kenya. Can we have separate, relatively cheaper packages for Ugandans? Can we involve young people in promoting domestic tourism? The findings of this study, therefore, provide appropriate avenues through which domestic tourism can be developed for sustainability and provide knowledge on how several factors affect and influence Ugandans’ participation in domestic tourism. Domestic tourism has several indirect benefits, such as making tourism sites financially stable and thus able to maintain workers and the cleanliness of the sights, supporting other sectors like agriculture and transport, and hence leading to increased government revenue.
Speaking at the dissemination workshop on December 13, 2023, the Dean of the School of Economics, Prof. Ibrahim Mike Okumu, congratulated the research team, saying it is through research that the academicians can be deemed relevant within the policy space. Prof. Okumu said the country has diverse tourist attractions, starting with the kingdoms and across the country, and a rich culture.
“Uganda is one of the most biodiverse countries in the world. It has a plethora of traditions by virtue of the kingdoms that make up Uganda,” he said.
He shared that some of the initiatives that are imperative for us to be in a position to sell tourism products domestically include digitalization. He said it would be a good idea for the country’s tourism information to be only a click away. Prof. Okumu also emphasized the importance of promoting sustainable tourism practices. He suggested that the country should prioritize initiatives that minimize the negative impact of tourism on the environment and local communities. Additionally, he highlighted the need for effective marketing strategies to attract both domestic and international tourists, such as leveraging social media platforms and collaborating with travel influencers. Prof. Okumu also called for the need to streamline service providers across the value chain and to improve the overall tourist experience through better infrastructure and customer service. The tourism industry, he said, can be exploited to address the issue of youth unemployment.
Mr. Ezra Byakutangaza, the representative of Mak RIF, the funding agency, appreciated the researcher for the time put in to conduct the study. He thanked the government of Uganda for the research funding given to Makererere University through RIF. He also commended the researchers for their dedication and commitment to finding solutions that can be implemented effectively.
Research team: John Bbaale Mayanja, Peter Babyenda, Stevens Mwalye, John Mutenyo and Rose Nakimu
Business & Management
Public Investment Management Centre Concludes 4th Cohort Training on Financial Implications Guidelines
The Public Investment Management Centre of Excellence (PIMCoE), hosted by the College of Business and Management Sciences at Makerere University, successfully concluded the training of its 4th cohort of public officers on November 15, 2024. This capacity-building program focused on the User Acceptance Training on Guidelines for Clearance of Financial Implications, a critical process mandated by Section 76 of the Public Finance Management Act (PFMA), 2015.
Under the PFMA, every bill presented to Parliament must include a Certificate of Financial Implications (CFI) issued by the Ministry of Finance, Planning and Economic Development (MoFPED). The preparation of the Statement of Financial Implications (SFI), which forms the basis for the CFI, is the responsibility of Ministries, Departments, and Agencies (MDAs). This statement provides detailed revenue and expenditure estimates and projected savings over a minimum of two years’ post-enactment.
Empowering MDAs with Essential Skills
The training sessions, which began last week and will continue into the following week, aim to equip MDAs with the skills required to prepare robust SFIs. These competencies are essential for MoFPED Budget Analysts to review and draft CFIs or Letters of Financial Clearance effectively.
The 4th cohort comprised officers from key institutions, including the Ministry of Lands, Ministry of Agriculture, National Environmental Management Authority (NEMA), Uganda Land Commission, Ministry of Local Government, National Agricultural Research Organization (NARO), and the Ministry of Kampala, among others.
A Step Toward Transparent and Accountable Governance
Speaking at the closing ceremony, Mr. Moses Sonko, Principal Economist at MoFPED, commended the initiative and acknowledged the value it brings to Uganda’s public policy and legislative processes. Representing the Permanent Secretary of MoFPED, Mr. Sonko highlighted the importance of the training in strengthening governance frameworks.
“This training was developed to equip us with tools and knowledge essential for our roles in ensuring that Uganda’s policy and legislative proposals are financially sound, transparent, and align with national priorities,” Mr. Sonko remarked. He encouraged participants to apply their newly acquired skills to enhance policy preparation and implementation.
He also emphasized the multi-dimensional nature of the training, which enables officers to identify the financial, social, environmental, and economic impacts of proposed bills and policies.
Participant Feedback
Participants expressed their enthusiasm and gratitude for the training. Mr. Davis Kwizera from the National Animal Genetic Resources Centre and Data Bank (NAGRC&DB) shared his positive experience, stating: “This training has offered a wealth of knowledge and an in-depth understanding of policy processes. It will significantly enhance our ability to prepare relevant policy documents. If you’ve taken the courses on Financial and Risk Analysis as well as Investment Appraisal and Risk Analysis, this program completes the package.”
The new guidelines for the clearance of financial implications will officially take effect in July 2025. PIMCoE remains committed to building the capacity of public officers to ensure that Uganda’s legislative and policy frameworks are underpinned by sound financial and risk analyses, fostering a culture of accountability and sustainable development.
For more updates on PIMCoE programs and upcoming training sessions, visit PIMCoE’s official website.
In a pivotal workshop held at Makerere University on November 12, stakeholders, researchers, and policymakers gathered to discuss the progress and emerging issues in the implementation of Uganda’s Parish Development Model (PDM). This transformative model, conceptualized by Prof. Ezra Suruma, aims to tackle some of Uganda’s most pressing socio-economic challenges: poverty, unemployment, and limited access to essential services, particularly in healthcare and agriculture.
Prof. Suruma, the architect of PDM, underscored the crucial role of researchers in creating wealth-empowering strategies for Ugandans. “The PDM is designed to eradicate poverty, promote economic inclusion, improve service delivery, and modernize agriculture,” Prof. Suruma stated. He highlighted that the model not only provides a pathway for Uganda’s rural households to participate in the economy but also aims to address the underlying issues that leave many citizens unable to afford basic needs.
The Vice Chancellor of Makerere University, Prof. Barnabas Nawangwe, commended Prof. Suruma’s visionary leadership and the significant impact PDM is expected to have on communities across Uganda. “The PDM stands as one of the largest government interventions aimed at eradicating poverty and uplifting communities,” he remarked. Prof. Nawangwe also emphasized Makerere University’s commitment to supporting PDM through the PDM Lab hosted by the College of Business and Management Sciences (CoBAMS), which serves as a hub for real-time data analysis to guide the implementation of PDM activities across the country.
The PDM Lab at CoBAMS, led by Prof. Eria Hisali and funded by the United Nations Development Programme (UNDP), is instrumental in collecting, analyzing, and interpreting data that can shape PDM policies at the grassroots level. During the workshop, Dr. Suruma extended his appreciation to UNDP for their support and acknowledged the researchers for their efforts in generating valuable insights into the effectiveness of PDM.
Despite Uganda’s notable economic growth in recent years, poverty remains a persistent challenge, with a significant portion of the population struggling to meet basic needs. Unemployment rates, especially among youth, are high, limiting economic opportunities for the country’s largest demographic. Access to healthcare, particularly in rural areas, is another critical issue, with many Ugandans unable to afford or reach essential medical services. These challenges underscore the need for initiatives like the PDM that are designed to create sustainable economic opportunities, improve household incomes, and ensure equitable access to services.
“PDM seeks to empower households to create wealth, ultimately reducing dependence on subsistence farming and encouraging local economic development,” Prof. Suruma emphasized. He believes that the model’s holistic approach will foster greater self-sufficiency among Uganda’s communities by addressing poverty from multiple angles, including agricultural modernization, financial literacy, and service accessibility.
As the workshop concluded, participants expressed optimism about PDM’s potential to drive sustainable change. Prof. Nawangwe reiterated Makerere University’s dedication to supporting this national initiative, affirming that the PDM Lab will continue to play a key role in assessing and enhancing the model’s effectiveness.
The Parish Development Model offers a beacon of hope for millions of Ugandans striving for a better quality of life, aligning with Uganda’s broader aspirations for economic growth, social equity, and sustainable development.
Business & Management
Study Explores PPPs for Sustainable Development in Uganda’s Tourism and Health Sectors
On November 11, 2024 the School of Business held a research dissemination workshop led by Dr. Jude Thaddeo Mugarura, a lecturer and researcher whose study focused on “Managing the Public Private Partnership (PPP) Operating Environment for Sustainable Service Delivery in Uganda’s Tourism Sector.” The event also featured research by his student, Simon Peter Kyomuhendo, who presented findings on “Public Private Partnership Adoption, Local Content Utilization, and Value for Money in the Ugandan Health Sector.”
Both studies, which delve into the role of PPPs in two crucial sectors—tourism and health—aim to provide insights into how strategic partnerships between public and private entities can address pressing service delivery challenges in Uganda. Dr. Mugarura’s study in the tourism sector emphasized the importance of a stable operating environment for PPPs, highlighting the need for clear policies, regulatory support, and sustainable practices that allow both public and private stakeholders to thrive. His research suggests that a conducive PPP environment is essential for Uganda’s tourism sector to achieve sustainability, attract international visitors, and create job opportunities, while preserving the country’s cultural and natural heritage.
Kyomuhendo’s research, titled “Public Private Partnership Adoption, Local Content Utilization, and Value for Money in the Ugandan Health Sector,” explored how PPPs can improve value for money (VFM) in healthcare delivery by encouraging local content utilization. His findings revealed a positive correlation between PPP adoption and VFM in healthcare, suggesting that well-structured partnerships can enhance efficiency and service quality. However, he noted that while PPPs support infrastructure development and resource allocation, local content utilization does not always have a strong moderating effect on VFM, indicating potential areas for policy improvement to ensure meaningful local engagement.
Dean of the School of Business, Prof. Godfrey Akileng, lauded the researchers for their dedication to tackling critical issues in Uganda’s development sectors. “These studies bring much-needed evidence to the table, demonstrating the potential of PPPs to transform our tourism and health sectors,” Prof. Akileng remarked. He emphasized that such research is pivotal to Makerere University’s commitment to producing actionable knowledge that aligns with Uganda’s national development goals.
Prof. Akileng extended his gratitude to the Carnegie Corporation of New York for supporting these projects, acknowledging that their funding was instrumental in advancing impactful research. “The generosity of our donor has enabled us to conduct thorough research and share insights that will inform policy and guide sustainable development efforts in Uganda,” he added.
The workshop encouraged discussion among participants, including policymakers, private sector representatives, and university staff, on the importance of PPPs in creating a resilient service delivery model. Dr. Mugarura highlighted the need for continual assessment of the PPP framework to adapt to evolving economic and social demands. He recommended that the government prioritize regulatory improvements and capacity building for local firms to enhance their role in PPP projects.
The dissemination workshop concluded with a collective call for increased collaboration between the public and private sectors. Both researchers emphasized that strategic partnerships hold the key to addressing Uganda’s service delivery challenges and achieving sustainable growth in tourism and healthcare.
