RAPEX Reform: Uganda’s bold push for efficiency faces controversy and challenges

In 2024, Uganda embarked on an ambitious restructuring of its public administration under the Rationalisation of Agencies and Public Expenditure (RAPEX) policy.

The initiative aimed to improve governance efficiency and address the burgeoning costs of running government agencies, estimated at UGX 1.3 trillion annually by 2021. While proponents laud the potential for streamlined operations, critics point to contentious outcomes, particularly in key sectors like coffee and energy, and the socio-economic implications of layoffs.

The Ministry of Public Service spearheaded the RAPEX policy to address overlapping mandates, jurisdictional ambiguities, and bloated administrative costs.

According to Minister Muruuli Mukasa, these inefficiencies hindered effective service delivery. Dr. Gerald Karyeija, a governance expert at Uganda Management Institute, supports the restructuring, emphasizing its roots in new public management principles aimed at enhancing public sector performance.

However, he also calls for extending reforms beyond agencies to include cabinet operations and other government departments for a more comprehensive approach.

Among the most notable changes was the integration of the Uganda Coffee Development Authority (UCDA) into the Ministry of Agriculture, Animal Industry, and Fisheries (MAAIF). This merger aims to align coffee sector operations with broader agricultural policies.

Advocates argue the move will enhance policy coordination and efficiency. However, critics, particularly from Buganda, argue that the merger risks undermining the coffee industry, a cornerstone of Uganda’s economy. Similarly, the Uganda National Roads Authority (UNRA) was dissolved, with its functions absorbed by the Ministry of Works and Transport. The government claims this will cut costs and improve infrastructure management.

Other changes include merging the National Information Technology Authority of Uganda (NITA-U) with the Ministry of ICT to centralize digital initiatives and combining councils like the National Youth Council and National Women’s Council under a single secretariat to streamline operations within the Ministry of Gender.

While the government expects significant savings, the transition has not been without challenges. Around 2,200 public servants are slated for retrenchment, and the Ministry of Public Service has allocated UGX 79.3 billion for severance packages. Critics fear that the job losses could worsen an already strained employment market.

Additionally, concerns persist about potential disruptions in critical sectors. In the energy sector, for example, the unbundling of electricity generation, transmission, and distribution under the Electricity Act of 1999 significantly improved efficiency. Reintegrating these entities could reverse these gains.

The merger of UCDA with MAAIF has been particularly contentious. Uganda’s coffee sector, which contributes nearly 20% of foreign exchange earnings, relies heavily on UCDA’s oversight. Katikkiro Charles Peter Mayiga has strongly criticized the merger, arguing that it disproportionately affects Baganda farmers, who account for nearly half of Uganda’s coffee exports.

President Museveni defended the move, stating that it aims to cut redundancies and improve coordination without jeopardizing coffee sector growth. However, concerns remain about whether the Ministry of Agriculture, with its broader remit, can maintain the high standards necessary to compete in global markets.

The industry also faces external challenges, including compliance with the European Union Deforestation Regulation (EUDR), which requires sustainability assurances for coffee exports. Stakeholders fear that MAAIF’s diluted focus on sector-specific issues could undermine Uganda’s competitive edge in global coffee markets.

As Uganda heads into 2025, the success of RAPEX hinges on managing transitions effectively. The government must address concerns over layoffs to mitigate social and economic fallout, ensure affected sectors maintain high standards and competitiveness, and balance cost-cutting measures with the need to deliver essential services.

While RAPEX promises a leaner government and potential long-term savings, its success will depend on transparent implementation, stakeholder engagement, and careful navigation of sectoral challenges. The stakes are high, with Uganda’s economic trajectory and public trust in governance reforms hanging in the balance.