Business 6 May 2026 Daily Monitor (Uganda)

Beyond Plans: Execution Key to Uganda's Secondary Cities Success

Uganda's National Development Plan IV aims to boost secondary cities like Gulu, Mbarara, and Arua to decentralize growth from Kampala, but success hinges on execution rather than design alone. Infrastructure, land issues, and financing challenges shape incremental development in these emerging urban centers. Source: https://www.monitor.co.ug/uganda/oped/commentary/uganda-s-secondary-cities-will-not-succeed-by-design-alone-5448704

Uganda’s National Development Plan IV (NDPIV) emphasizes secondary cities to spread economic growth and ease pressure on Kampala. Cities such as Gulu, Mbarara, Arua, Hoima, and Jinja are targeted as regional hubs, but strong plans require effective implementation.

Infrastructure drives progress. Major projects like the Kampala-Entebbe Expressway and highway upgrades show coordination between ministries and agencies. In Hoima, oil and gas investments, bolstered by Kabalega International Airport, position it as an energy hub. Gulu serves as a logistics center for the Acholi region, while Jinja leverages industry and tourism.

Development often trails infrastructure. In areas with reliable roads and services, private investment flows in. Economic corridors, such as the western route to Rwanda via Mbarara and the eastern link to Kenya through Jinja, enhance trade connectivity.

Land tenure poses challenges, especially in the Acholi sub-region where customary holdings slow large-scale projects. This leads to plot-by-plot construction in Gulu, focusing on mid-range housing, hotels, and commercial spaces aligned with NGO, education, and trade-driven demand.

Financing limitations force phased builds. Developers in Gulu and Arua start with ground-floor retail or storage to generate cash flow for expansions. Growth clusters around functional commercial centers, transport nodes, and social amenities.

These cities have clear economic anchors: oil in Hoima, agriculture in Acholi, trade in Arua, and industry in Jinja. Sustainable expansion demands disciplined execution to match form with function over the next two decades.

Source: Daily Monitor (Uganda), by Judy Rugasira, FRICS, Managing Director Knight Frank Uganda.