United Nations
Development Programme

Plot 15B Clement Hill Road

P.O Box 7184

Kampala, Uganda

Tel: (256) 414-233440/1/2/5

Fax: (256) 414-344801

Email: registry.ug@undp.org

The United Nations Capital Development Fund (UNCDF) was established in 1996 by the United Nations General Assembly in an effort to reduce poverty in the Least Developed Countries by piloting small scale investments that could be upscaled for development and which could make significant impact on Millennium Development Goals (MDGs). Accordingly, UNCDF and UNDP undertake joint programming, administrative and logistical support. 

In Uganda, UNCDF has been active since 1985, evolving over the years from project driven infrastructure delivery to institutional capacity development and policy impact through the local development model. Building on its niche role and comparative advantage, from 1997 UNCDF has concentrated on supporting the government's decentralization agenda through the pilot District Development Programme (DDP).

The joint programme expected to deliver the following outputs:
 

• LG capacity for effective LED governance developed (Local Economic Governance): This output aims to institutionalize the LED promotion function within the LG structure; provide the tools and capacities that enable LGs to deepen their understanding of their economy, the characteristics of its sectors, clusters and value chains, its competitive position and its opportunities and challenges and its position within the national economy. It is anticipated that such an understanding would provide a foundation for guiding the various LED promotion actions to be initiated by an LG as well as by others that an LG should play a pivotal role in guiding. Specifically, this output will strengthen LG capacity for convening LED stakeholders (the private sector), understanding their nuanced needs and aspirations and applying systems and capacities for tracking and safeguarding equity in local economic growth. This output also aims to strengthen the capacity of LGs for coordinating, guiding, & tracking actions of LED promotion actors as well as harmonizing the range of LED promotion interventions to ensure their alignment with a local LED vision/strategy;
• Local business environment enhanced (Locality Development) through developing and implementing systems, methodologies, capacities for: the analysis of a local economy and the assessment of the local business enabling environment and designing integrated, multi-actor LED strategies; investing in economic infrastructure, services and amenities (with financing through an LED Fund facility); enhancing the regulatory environment to address bottlenecks facing private sector activities; sustainable management of natural resources; promoting the growth of responsive and strategic Business Development Services (BDS); and the an inclusive financial sector.
• Business & market development services to respond to the strategic requirements of the private sector and stimulate demand are provided (Enterprise Development) in a sustainable manner. The type of such services will be decided based on the particular needs of each locality and could encompass one or a combination of the following: provision of relevant market information; developing institutional arrangements, curricula and capacities for the development of local labour markets, provision of strategic Research & Development to local productive sectors; and enterprise capacity enhancement. LGs would play a catalytic role in kick-starting such services but would transfer this task for some of them to appropriate providers once operational within a locality. 
• Institutionalizing and activating national capacity for grounding LED initiatives within the national context and for documenting, analysing and enhancing the national context for LED promotion encompassing macro policies, legal and regulatory frameworks, institutions and the distribution of related mandates and functions. This will facilitate a process of national & sub national dialogue to inform action towards reforms for enhancing the enabling environment for the promotion of LED at both the national and sub-national levels...
• Gender equity in LED is embedded in the local LED promotion systems and activated through: implementation of the gender and livelihoods priority area of the Uganda Gender Policy; supporting and popularizing gender disaggregated data; strengthening use of appropriate information channels and technology by women and youth; tracking and supporting capacity of LGs to support LED initiatives of women and youth; developing and implementing an advocacy strategy on gender and rights in LED; a Post Graduate Course on Gender and LED; and support gender budgeting and gender audits in LGs.
• Access to Justice at the local level strengthened with emphasis on the link to LED promotion through: strengthening LED aspects of the local access to justice system; documenting best practices and gaps in arbitration of LED related disputes and conflict resolution mechanisms in post conflict/war affected areas; and support participation of women and youth in peace and reconciliation initiatives.