Uganda’s construction sector has seen significant growth in recent years, and 2023 has thus far been a landmark year for furthering this trend. The industry’s upsurge is buoyed by several factors, including Uganda’s burgeoning population, urbanisation, industrialisation, and government-led infrastructure projects.
One of the most ambitious government projects has been the development of new cities. As of July 1, 2023, the government announced the operationalisation of five more cities, following the 2020 elevation of seven municipalities to city status. These cities – including Mbarara, Jinja, and Gulu – are receiving significant infrastructure upgrades, stimulating construction activity in residential, commercial, and public sectors. This urbanisation strategy is expected to decentralise services and promote balanced countrywide growth.
The Uganda National Roads Authority (UNRA) has been notably active in 2023, unveiling several road network projects. One of the significant highlights is the ongoing construction of the Kampala-Jinja Expressway, a mega-infrastructure project partly funded by China’s Exim Bank. The 95km highway, set to be completed by 2026, will improve transport efficiency and stimulate economic activity between Kampala and Jinja, Uganda’s second-largest commercial centre.
Other pivotal infrastructure projects include the Isimba and Karuma Hydroelectric Power Stations. They mark an important step towards Uganda’s goal of enhancing the energy sector and providing a consistent electricity supply to meet increasing demand from the industrial sector and households. Their completion will significantly bolster the country’s total electricity output, opening up further opportunities for industrial growth and development.
On the real estate front, the Uganda National Housing and Construction Company (NHCCL), in partnership with local and international investors, is driving the construction of affordable homes to meet the high demand in urban areas. The Kampala Affordable Housing Project is a standout endeavour, aiming to provide thousands of decent, affordable homes to Ugandans.
Additionally, Uganda’s embrace of green construction is manifesting through the “Green Building Minimum Compliance System,” a collaboration between the Uganda Green Building Council and the Ministry of Works and Transport. This initiative encourages sustainable construction practices to reduce environmental impact and long-term operating costs. Prominent green projects include Pearl Marina Estates on the shores of Lake Victoria, demonstrating that sustainable, eco-friendly construction is a feasible and advantageous path for Uganda’s future.
The construction industry’s growth has also been facilitated by advancements in technology. Usage of Building Information Modelling (BIM) and digital collaboration tools has grown, helping to improve project management and coordination, reduce errors, and save time and resources. There’s also an increased uptake of off-site construction methods, promoting efficiency and safety while minimising wastage.
However, the sector has also encountered challenges. The rise in global commodity prices due to the COVID-19 pandemic has led to increased construction costs. There have been concerns over the quality of construction materials, raising questions about building safety standards. Furthermore, bureaucratic red tape and issues surrounding land acquisition have also posed hurdles to rapid development.
To mitigate these challenges, the government, through the National Building Review Board (NBRB), has been enforcing the Building Control Act, 2013, which emphasises stricter adherence to construction standards. The Construction Industry Skills Council, formed in 2022, is also striving to address the skills gap by standardising qualifications and providing training opportunities.
Despite the hurdles, there are numerous reasons to remain optimistic about Uganda’s construction sector. The government’s urbanisation strategy, major infrastructure projects, and the drive towards sustainability and digitalisation signal that the industry is on a trajectory of continued growth. Further, increased investment in skills development and a stricter regulatory environment point towards improved quality and safety in the future.
Uganda’s construction industry is a dynamic, evolving sector experiencing considerable growth. Driven by significant infrastructure projects, urbanisation, and technological advancements, the industry’s future appears bright, promising a substantial contribution to Uganda’s economic development.