The United Nations Capital Development Fund (UNCDF), Ministry of Local Government (MOLG) and five selected local governments of Amudat, Amuria, Omoro, Otuke and Yumbe signed a memorandum of understanding for the application and implementation of the Local Government Excellence Fund on September 6, 2018.

The UNCDF Head of Office in Uganda, Dr. Dmitry Pozhidaev represented UNCDF and the Chief Administrative Officers their respective districts. The ceremony held at the Civil Service College Jinja, was witnessed by the Permanent Secretary Ministry of Local Government, Mr. Ben Kumumanya.

The Local Government Excellence Fund is a €2 million facility being implemented by UNCDF in partnership with Ministry of Local Government and participating local governments through the Development Initiative for Northern Uganda (DINU) programme funded by the European Union under the 11^th European Development Fund. The main objective of the LGEF is to provide financial incentives for improved performance of the beneficiary local governments as a catalyst to promote effective and efficient public service delivery. The LGEF is discretionary development fund with In-built incentives for performance and competition. Access and utilization of the fund will be based on performance in LG annual performance assessment undertaken by Government of Uganda.

The fund will support the selected districts and municipalities in planning and strengthening service delivery to promote growth and development. Priority sectors include health, education, water and environment, agriculture and transport.

Dr. Dmitry Pozhidaev affirmed that the fund’s main goal is to improve the local governments’ capabilities in planning social and economic empowerment of women and young people.

“We are expecting that this fund will enable these local governments to improve on their ability to improve access to better services for their communities in order to achieve growth and development,” Dr. Pozhidaev said during the ceremony.

Mr. Ben Kumumanya, the Permanent Secretary Ministry of Local Government said limited funding has compromised service delivery in most districts. He thanked the European Union and UNCDF for the partnership.

"We are excited for this extra effort in supporting our local governments to be able to deliver services in line with their mandate. We are ready to guide them to ensure these funds are put to good use,” he said.