Government Unveils Plans to Cut Building Costs and Empower Local Contractors

The Ugandan government is rolling out strategic reforms designed to lower construction expenses, improve access to credit, and elevate local contractors. These interventions form a core part of the nation’s ambitious tenfold economic growth agenda.

Speaking at the 3rd Doing Business Forum held in Kampala, Finance Minister Henry Musasizi noted that regulatory red tape and expensive financing continue to hold back the construction sector. He highlighted that unclear building approval procedures and unpredictable timelines discourage vital investments, prompting a call for local governments to streamline physical planning and enhance transparency.

To drive industrial production and create jobs, Musasizi emphasized the need to equip domestic contractors with modern tools, technical expertise, and management skills. He also encouraged stakeholders to embrace locally manufactured building materials to curb reliance on costly imports and improve market competitiveness.

Addressing Uganda’s estimated 2.4 million housing deficit, the minister pointed out that developers and households struggle to secure affordable, long-term financing. To tackle this, the Ministry of Finance plans to support the phased capitalization of the National Housing and Construction Company. Furthermore, ongoing investments in roads, power, and water supply will continue to support urban expansion and reduce the overall cost of doing business.

Musasizi also underscored the importance of transparency, announcing that digital procurement reforms are underway to fight corruption and ensure optimal value for public funds. Forum participants were urged to draft actionable recommendations that will directly influence the upcoming national budget and medium-term policy frameworks.

Read more details on the original report by visiting Nile Post.