Economic Reform Agenda: A New Vision for Uganda
Abraham Luzzi, an independent parliamentary aspirant in Kampala Central, has introduced a comprehensive economic reform agenda aimed at transforming Uganda’s financial landscape. His proposals focus on restructuring national spending, increasing domestic revenue, and improving worker welfare, including the introduction of a statutory minimum wage of Shs 200,000.
Restructuring National Spending
Luzzi’s manifesto emphasizes that 70 percent of Uganda’s national budget should be allocated exclusively for development programs such as infrastructure, health facilities, skilling, and job creation. He argues that public spending must shift away from consumption-driven budgeting to prioritize long-term growth and stability.
The manifesto criticizes the persistent bias toward recurrent expenditure during budget formulation, warning that excessive allowances and wages for government officials are crowding out investment in services that benefit Ugandans. It states that “the Development expenditure shall always be greater [than] 70% while Recurrent expenditure shall be not exceeding 30% including Debt repayments.”
Luzzi advocates for enforcing what he calls the “Rule of Equilibrium in Government Spending,” which aims to prevent debt spirals and ensure that every budget funds visible, productive outcomes. This approach is expected to reduce borrowing and restore fiscal discipline.
Increasing Domestic Revenue
To support sustainable development, Luzzi pledges to raise Uganda’s tax-to-GDP ratio from 13 percent to 20 percent. He notes that improved revenue performance is essential for a development-focused budget. The shift will involve ending “unrealistic tax exceptions to able tax-paying local and foreign companies” and formalizing tax collection in the informal sector.
The goal is to support “public income generation, lower or even eliminate the bad consistent borrowing to save our budget imbalance.” Analysts have long warned that Uganda’s narrow tax base limits investment in key sectors despite rapid population growth.
Worker-Centered Overhaul
Luzzi positions his manifesto as a worker-centered overhaul, proposing a national minimum wage of Shs 200,000 per month to protect employees from exploitation. The policy would apply across the private and public sectors, including foreign-owned firms.
The manifesto argues that the wage floor “will protect workers from exploitation by both local and foreign companies or government.” Alongside wage protections, Luzzi proposes major salary enhancements for essential public servants, recognizing that professional motivation must be acknowledged where service demands are higher.
As an example, the document states: “A medical doctor shall earn a minimum salary of Shs 18 million after all they are not many,” while teachers would also receive significant increases tied to qualification and risk. Such measures are expected to reduce corruption linked to “economic desperation” and improve service delivery.
Formal Employment Contracts
Luzzi further proposes that all workers, whether in government or the private sector, must be employed under formal contracts to prevent “arbitrary dismissal” and protect their rights. Labour groups have repeatedly raised concerns about widespread casualization and lack of workplace protections, especially in the informal economy that employs most Ugandans.
Private-Sector Financing for Infrastructure
To reduce reliance on loans for large-scale infrastructure, the manifesto introduces increased use of Build-Operate-Transfer (BOT) arrangements. Under this model, private investors would finance and operate new assets such as roads and energy projects, recovering their costs through user fees before transferring ownership back to the state. Luzzi argues this strategy would preserve fiscal space while enabling development.
Economy Must Work for Citizens
Positioning his proposals as a direct correction to structural inequality, Luzzi says his economic reforms aim to ensure that national prosperity reaches ordinary Ugandans. “Uganda’s economy must work for its citizens not just for civil servants, politicians, the rich or the elite few,” the manifesto asserts.