Programme Funding

NAADS programme has a vision for 25 years with 7 years for its first phase covering the financial period from 2001/2002 through 2007/2008. The cost for the first phase is estimated at US$108 million from four sources of funding. These are:

At the moment Co-operating partners are:

Mechanism of Funding

The program funding is through ‘Basket Funding’, arrangement which is a new approach in the country. Funds provided by Co-operating Partners (earmarked budget support) and the Uganda Government contribution follow a Common Flow of Funds Mechanism where the funds are pooled into a common ‘basket ‘ under the Government Consolidated Fund.

The Memorandum of Understanding (MOU) between the Uganda Government and the Co-operating Partners guides the funding and implementation modalities. Co-operating Partners contribute 80% of NAADS budget, Government of Uganda 8%, Local Governments 10% and Farmers 2%. These shares in NAADS budget will change over the planned 25-year period of NAADS programme. Farmers and local governments will take on increasing funding responsibilities in line with the level of commercialisation achieved.

Due to limitations in funding under the Government ‘Medium Term Expenditure Framework’ (MTEF), the Government of Uganda budget may not always be able to accommodate NAADS budget, which in the initial years has a high growth rate. Consequently some funding has in the past been, and most probably will in the near future, be sourced under project mode. In the past two years funding under this mode has been provided by the following sources:

In addition to the above funding arrangements, Food and Agriculture Organization of the United Nations (FAO) has made available limited funds to NAADS to address special initiatives to pilot some aspects of processes in implementing NAADS and for mainstreaming some cross cutting issues in NAADS activities such as HIV/AIDS.

Planning, Budgeting and Implementation
The Co-operating Partners and Government of Uganda work together systematically over the course of each year to agree on implementation plans, financial commitments and implementation progress. Co-operating Partners plan, budget and commit their financial support to NAADS in a manner in-line with Government of Uganda planning and budgeting cycle.



Budget Allocation

NAADS implementation is through the local governments. The NAADS Secretariat however, provides co-ordination and backstopping. In view of that, allocation of funds for programme activities is as follows: