Views: 23
LEGS Project Boosts Rural Economic Growth
Ministry of Local Government Partners with IsDB to Implement $50.4 Million LEGS Project Supporting Rural Livelihoods
By Naome Namusoke/KMA Updates
The Government of Uganda, through the Ministry of Local Government and with support from the Islamic Development Bank (IsDB) and the Lives and Livelihoods Fund (LLF), is spearheading the Local Economic Growth Support (LEGS) Project, an ambitious $50.4 million initiative running from 2019 to 2025. The project is anchored within the National Policy on Local Economic Development (2014) and aims to transform the rural economy by addressing key challenges in agriculture, water access, infrastructure, and financing.
The LEGS Project is designed to deliver a sustainable and integrated development model that directly improves the livelihoods of approximately 2.3 million Ugandans—51% of whom are women—across 17 targeted districts. By combining investments in agricultural productivity, market access, water resource management, and micro-finance, the project seeks to stimulate inclusive and resilient local economic growth while contributing to four critical Sustainable Development Goals (SDGs): ending poverty (SDG 1), achieving zero hunger (SDG 2), ensuring access to water and sanitation (SDG 6), and promoting affordable and clean energy (SDG 7).
The LEGS Project is jointly funded by the Islamic Development Bank ($33 million), the Lives and Livelihoods Fund ($10 million), the Government of Uganda ($4.8 million), and local beneficiary communities who are contributing $2.6 million in cash and in-kind. The total project budget stands at $50.4 million.
The Ministry of Finance, Planning and Economic Development (MoFPED) serves as the official borrower, while the Ministry of Local Government executes the project. Implementation is being conducted through strategic partnerships with the Microfinance Support Centre Limited (MSC), which leads the value chain development component, and Millennium Promise Alliance (MPA), offering technical backstopping. Key oversight and technical support are also provided by the Ministries of Water and Environment; Agriculture, Animal Industry and Fisheries; and Trade, Industry and Cooperatives.
The development objective of the LEGS Project is to enhance agricultural production and productivity in order to raise household incomes and improve livelihoods. This will be achieved through focused investments in rural infrastructure such as irrigation and roads, development of agricultural value chains, and expanded access to microfinance.
So far, the project has set tangible outcome targets, including: A 25% increase in access to safe water, A 30% rise in the use of improved seeds among farmers, A 10% increase in crop yields through expanded irrigation and improved farming practices, A 20% boost in the adoption of renewable and energy-saving technologies
The LEGS Project operates under two major components including Water for Enhanced Agricultural Productivity and Environmental Conservation, implemented in 10 districts that is Alebtong, Bunyangabu, Kabarole, Kumi, Kibuku, Katakwi, Kyenjojo, Ntoroko, Gomba, and Nakaseke.
And in the second Component, Support to Value Chain Development, implemented by MSC, covers all the above districts and an additional seven including Adjumani, Buyende, Tororo, Buikwe, Nwoya, Luwero, and Rukungiri.
To ensure broad and sustainable impact, the LEGS Project is investing in Water provision for both production and human consumption, Rehabilitation and construction of rural access roads, Post-harvest and market infrastructure, Natural resource conservation efforts, Livestock, fisheries, and beekeeping (apiary) development, Strengthening farmer cooperatives and groups, Enhancing access to affordable agricultural finance, Deployment of energy-saving and renewable technologies in rural communities
By 2025, the Ministry of Local Government envisions a rural Uganda that is economically vibrant, environmentally sustainable, and resilient to poverty and food insecurity. With LEGS acting as a catalyst for local transformation, the project is poised to make a lasting contribution to Uganda’s socio-economic development, empowering communities to take control of their economic destinies while safeguarding natural resources for future generations.