so that in the views of some, the foreign owners use their control of the business as a means of bringing people from abroad to work and perpetuate discrimination against locals even in areas where there is ample supply of skilled labour on the domestic market. The Panel thus recommends that Government consider reviewing its policies so that foreign employees would be welcome when they bring skills that are in short supply in the country. xxiv. Others also see foreign investors as beneficiaries of a skewed regulatory system that makes all forms of tax holidays and other incentives available exclusively to them and deny domestic investors a level playing field on which to compete and win. The Panel thus recommends that the Government review its incentive structure and consider eliminating all discrimination against domestic investors. xxv. Despite its recent successes, the Ugandan economy remains largely dependent on commodities and raw materials. The Government, through its Vision 2040, is determined to change that and transform Uganda from an agrarian nation to a modern industrial state by 2040. The focus on industrialisation is certainly the right one and the Government must be commended for its determined efforts towards this goal. At the same time, the services sector is also growing fast, indeed faster than the manufacturing sector. xxvi. One of the major constraints against Uganda's industrialisation drive is the mismatch between available skills in the country and what industry actually needs to achieve this goal. For that, the Panel recommends an all-inclusive review of the country's approach to education with the involvement of representatives of industry as well as those responsible for the design of education policy and for its actual delivery. 4. CORPORATE GOVERNANCE xxvii. In the period following the base review of Uganda, the regulatory and business environment has improved markedly. Uganda's ranking as indicated by various indices, such as the World Bank's Doing Business Index, the World Economic Forum's Competitiveness Index, and the Economic Freedom Index show trends of progressive improvement from 2008 to 2017. xxviii. Uganda's corporate governance framework comprises both voluntary codes and mandatory legislation found in the Companies Act and corporate governance regulations for financial institutions. Table F of the Companies Act is mandatory for the public sector and has provisions on directors and management, shareholders, records and reporting, but is not fully aligned with international best practice. The voluntary framework for corporate governance was put in place by the Institute of Corporate Governance Uganda and applies to the private sector. xxix. Uganda's private sector is dominated by the informal sector whose ability to create jobs and wealth is constrained by various factors. Uganda is found at the top of rankings of entrepreneurial spirit in the world. Notwithstanding this high rank, however, support to the informal sector and small enterprises has been limited and the private sector, comprised largely of Micro, Small and Medium Enterprises (MSMEs) and informal sector businesses, remains weak. The challenge of limited private sector development stifles growth and limits job creation, particularly for the youth, and increases inequality and attendant problems PAGE 8 5