Government has outlined a number of reforms aimed at improving infrastructure delivery, speeding up business approvals and strengthening the capacity of local contractors to drive growth in Uganda’s construction sector.
The Permanent Secretary and Secretary to the Treasury (PSST), Ramathan Ggoobi, said the sector needs better project planning, easier access to financing, faster approval processes and greater accountability to deliver on its potential.
Speaking at the 3rd Doing Business Forum at Mestil Hotel in Kampala, Ggoobi said a strong construction industry was important to the wider economy, creating opportunities for local contractors, manufacturers, professionals and workers.
Under the Fourth National Development Plan (NDP IV), Government plans to increase the share of paved national roads from 29 per cent to 33 per cent, raise rail’s share of cargo transportation from three per cent to 20 per cent and reduce the housing deficit from 2.4 million to 1.9 million units.
Ggoobi said these investments should help lower transport costs, improve electricity reliability and make development more affordable.
He, however, stressed that proper project preparation, coordination of utility services and timely implementation were necessary to ensure that infrastructure projects deliver the expected results.
On local contractors, Ggoobi said awarding contracts to Ugandan companies was not enough. They also need affordable financing, equipment, technical skills and proper management systems to deliver projects on time and to the required standards.
Government is also working to address skills gaps in the industry through the Technical and Vocational Education and Training (TVET) Council. The focus is on practical training, industry attachments, apprenticeships and competency-based certification to prepare young Ugandans for jobs in the construction sector.
Ggoobi also highlighted progress in land administration, noting that the introduction of the Uganda National Land Information System and 22 Ministry of Lands Zonal Offices had helped reduce land title processing time from 180 days to 45 days.
The Building Industry Management System is also being used to digitise building permit applications, inspections, professional verification and payment of fees.
He called for the system to be linked to land administration, business registration, taxation and professional regulatory systems to reduce delays and make the approval process easier.
“Businesses should be able to track applications, know requirements and fees upfront, and receive decisions within published timelines. Electronic signatures should also reduce unnecessary visits, costs and delays,” Ggoobi said.
On access to financing, he pointed to the Uganda Development Bank’s Shs150 billion Local Contractors Financing Initiative, which provides indigenous contractors with affordable loans, equipment and capacity development support.
Of the Shs59.03 billion approved under the initiative, Shs24.89 billion had been disbursed.
Ggoobi said Government needed to address the delays between loan approval and disbursement so that contractors can access the money needed to undertake projects.
“We must understand and address the constraints between approval and disbursement so that financing translates into completed work,” he said.
He called for an action plan setting out the challenges facing the construction sector, the reforms needed, the institutions responsible and clear deadlines for implementation.
Ggoobi said the real measure of the forum’s success would be whether businesses begin to experience faster services, lower costs and greater certainty when dealing with Government.
