Harnessing Public-Private Partnerships for Inclusive Digital Economies: Lessons from Uganda
Tags
A society can’t solve its developmental challenges without strong partnerships and dialogue.
In Uganda, since the launch of the ‘Leaving No One Behind in the Digital Era’ strategy, UNCDF has fostered strategic partnerships with the public, the private and the development sector as well as the academia sector. These partnerships constitute the basis of the market systems development approach UNCDF is undertaking with a five-year grant provided by the Swedish International Development Cooperation (SIDA). The aim of the programme is to leverage digital technologies to address identified market constraints in agriculture, health and education.
UNCDF is working closely with the Ugandan government, who is a key stakeholder to achieve a digital economy because of its double role of enabler and user of digital solutions. In the Kole district for instance, UNCDF worked with the Ministry of Local Government to undertake a study that led to the introduction of digital P2G tax collection. This study laid the foundation for its expansion by the World Bank.
Closely related to our collaboration with the government are our partnerships with various parastatals such as the National Information Technology Authority of Uganda (NITA-U). UNCDF is finalizing an MoU with NITA-U approving the use of our identified digital solutions to unlock constraints within government business and the broader economy. We have also received clearance from NITA-U and the Uganda Communications Commission to partner with the Rural Development Fund to develop the digital literacy agenda to enhance rural communication and inclusion of the rural poor.
In our continued quest to harness public-private partnerships for inclusive digital economies, one of our flagship partnerships is with Startup Uganda. Startup Uganda is an umbrella organization that brings together a number of innovators across the digital landscape. Through Startup Uganda, UNCDF has empowered innovators to incubate and develop new knowledge, and to enjoy the economies of scale that accrue from their membership. To date, Startup Uganda members have developed meaningful and scalable digital products ranging from digital agriculture extension and advisory services to digital credit scoring models for micro, small and medium businesses to ease their access to finance. Such solutions address and unlock identified hinderances to improve the quality of life for many Ugandans in rural areas.
The Digital Economy Advisory Board is another salient intervention in the journey of UNCDF towards building a Ugandan digital economy that leaves no one behind. Launched in 2019, the Digital Economy Advisory Board is a group of eminent development partners and stakeholders that hold quarterly meetings to brainstorm and offer advisory services to blended finance initiatives. The diverse knowledge and experience of the board members proffer new perspectives on key areas that can help us to achieve an inclusive digital economy.
Closely related to the above is a group of technical persons that form the Regional Advisory Board in districts in West Nile, Lango and Acholi sub-regions where our programme is being implemented. The regional board is nominated by the Chief Administrative Officers of the districts where we work in order to align our projects with the district agenda.
UNCDF is also working with other development partners, foundations and UN agencies to strengthen the role of the private sector in the development of financial inclusion using digital technologies. These partnerships channel our resources to initiatives that support vulnerable groups like refugees. The programme includes the development of a financial literacy curriculum for refugees in partnership with World Food Programme as well as technical support for the extension of agency banking in Nakivale Refugee settlement, which has been replicated in other settlements and has led to improved access to financial services for the refugee communities.
The private sector is central to the projects implemented by UNCDF. These projects include agro-advisory service providers such as Hamwe East Africa, community health organizations like BRAC Uganda and education solutions providers like Service Cops, and mobile network operators like MTN and Airtel to improve rural communication and access to financial services.
Other examples of projects launched with the private sector are the launch of digital solutions to alleviate challenges faced by farmers in rural areas in July 2020 and projects to improve access to health services in rural communities launched in September 2020. These projects are being implemented in selected regions in northern Uganda and Kiryandongo district.
For more information on our approach please visit our Inclusive Digital Economies page.
Stay tuned for our next blog on ‘Unlocking Innovation through Technology and Strategic Partnerships in the Health Sector in Uganda’ that shows how private public partnerships are working in the health sector.