Government Relies on Construction to Propel Uganda to $500 Billion Economy by 2040

The Ugandan government is heavily betting on the construction sector as a foundational driver to expand the country’s economy to an ambitious $500 billion by 2040. Speaking at the third edition of the Doing Business Forum in Kampala, the Minister of Finance, Planning and Economic Development, Mr. Henry Musasizi, highlighted that construction is essential for bolstering all major economic sectors.

Under the Tenfold Growth Strategy launched in 2023, Uganda aims to scale its GDP from roughly $50 billion up to $500 billion. The strategy focuses on four key pillars known as ATMS: Agro-industrialisation, Tourism, Mineral development, and Science/Technology innovation. According to officials, achieving success in these areas relies heavily on robust infrastructure, ranging from processing plants and warehouses to tourism accommodations and technology parks.

To facilitate this massive transformation, the government plans to support the phased capitalisation of the National Housing and Construction Company while promoting innovations to lower building costs. Furthermore, authorities are working closely with local governments to improve physical planning, streamline building approvals, and uphold high construction standards. Building local capacity and expanding access to long-term financing are also critical steps to address Uganda’s estimated 2.4 million housing unit deficit.

Ms. Dianah Nannono, Head of the Private Sector Development Unit at the ministry, underscored that the construction value chain permeates every key growth sector. She noted that recent government interventions, such as reduced electricity connection fees and increased funding for manufacturing and product certification through the Uganda National Bureau of Standards, are designed to create a more enabling environment for private developers.

Permanent Secretary and Secretary to Treasury Dr. Ramathan Ggoobi echoed these sentiments, calling for improved infrastructure delivery, enhanced local contractor capabilities, and faster administrative processes to fully unlock the potential of Uganda’s construction ecosystem.

Read more details on the Daily Monitor Source Report.