This is a best prospect industry sector for this country. Includes a market overview and trade data.
Last Published: 8/3/2017

Overview
Uganda’s infrastructure needs remain substantial.  With a 10 percent per annum growth rate in car ownership, Uganda’s road network is overburdened, leading to congestion around cities and crowding on highways.  Furthermore, Uganda’s roads are poorly maintained, making transportation costly and dangerous.  In addition to roads, Uganda faces an 8 million unit housing shortage according to the Uganda National Planning Authority.  With an estimated 300,000 housing units needed per year, commercial construction and residential construction in Uganda are booming.
 
The GOU allocated 31 percent of its 2016/2017 budget to road and energy infrastructure, by far the largest allocation of any sector.  Multilateral financial institutions and the donor community play the largest role financing these projects through concessional loans.  Uganda has no domestic production of the equipment needed to develop large-scale infrastructure projects.  Additionally, Uganda's growing industries and service providers badly need larger and more modern sites, such as industrial zones, in which to operate.  The government and World Bank are funding the construction of several industrial zones, such as one 13 kilometers outside Kampala in Namanve.  The first firms moved into the site in 2010, but efforts to expand roads, electricity, and water/sewage have been slow.  The Ugandan government plans to build other zones in Uganda's major urban centers.

Construction

2012

2013

2014

2015

Cement Production (metric tons)

1780

2023

2141

2330

GOU Expenditure on construction and roads (million USD)

236

360

362

420

 
Leading Sub-Sectors
Project Management:  Although construction remains a dominant sector within Uganda’s economy, projects are poorly managed.  The GOU’s lack of enforcement of anti-corruption laws has led to project delays and cost overruns on the largest infrastructure projects in Uganda.  (Construction of the Karuma and Isimba dams are years behind schedule and the dams are already showing signs of damage from the use of inferior building materials).  Uganda is in need of effective project management services.  Furthermore, U.S. firms are familiar with complying with environmental regulations and promoting corporate social responsibility projects.

Opportunities
In 2007, the GOU announced the “Uganda Vision 2040” plan to lay out its road map for Uganda to become a developed economy.  Construction will play a substantial role in Uganda’s development, making project management a promising sector for investment.

Uganda Vision 2040 identifies a number of projects that will form the core of the development strategy, including:

  • A Hi-tech ICT city and associated ICT infrastructure
  • Large irrigation schemes in different parts of the country
  • Phosphate industry in Tororo
  • Iron ore industry in Muko, Kabale
  • Development in five regional cities (Gulu, Mbale, Kampala, Mbarara, and Arua) and five strategic cities ( Hoima, Nakasongola, Fort Portal, Moroto, and Jinja)
  • International airport upgrade
  • A standard gauge railway network with high speed trains
  • Upstream oil wells, midstream heated export pipeline, and oil Refinery with associated road and building infrastructure needs.
  • Multi-lane paved national road network linking major towns, cities and  other strategic locations
  • Globally competitive skills development centers
  • Hydro power plants (Karuma, Isimba, Ayago, and Murchison Bay)
  • Science and Technology parks in each regional city
  • International and national referral hospitals in regional cities.

Web Resources
African Development Bank
East African Development Bank
Uganda Ministry of Tourism Trade and Industry
Uganda Privatization Unit
World Bank
Uganda Vision 2040 document

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Uganda Design and Construction Trade Development and Promotion