Uganda's construction sector is expected to benefit from a fresh wave of government reforms targeting building approval delays, limited access to affordable financing, inadequate capacity among local contractors and accountability in public infrastructure investments.

Finance Minister Henry Musasizi and the Permanent Secretary/Secretary to the Treasury (PSST), Dr Ramathan Ggoobi, outlined the priorities during the 3rd Doing Business Forum held at Mestil Hotel in Kampala on November 5, 2026.

Held under the theme, "Unlocking Uganda's Tenfold Growth through the Construction Value Chain: Regulatory Reform, Local Capacity and Infrastructure Investment," the forum brought together government and private sector stakeholders to discuss practical interventions for improving the construction industry.

Musasizi said Government intends to work with local governments to improve physical planning, simplify building approval procedures and strengthen compliance with construction standards.

He emphasised that developers should have clear information about the requirements, costs and timelines involved in obtaining building approvals to make construction more predictable and reduce unnecessary delays.

The Minister also called for stronger support for Ugandan contractors to acquire the technical skills, equipment and management capacity required to undertake quality construction projects.

He said Government and the private sector should support innovations that make locally manufactured building materials more competitive, helping to reduce construction costs while increasing the participation of Ugandan businesses and workers in the value chain.

Uganda's housing deficit, estimated at 2.4 million units, was another major concern raised at the forum.

Musasizi said addressing the shortage would require increased private sector investment and access to affordable, long-term financing for households and property developers.

He revealed that the Ministry of Finance, Planning and Economic Development (MoFPED) would support the phased capitalisation of the National Housing and Construction Company, alongside private sector innovations aimed at lowering the cost of building.

He also highlighted the importance of continued government investment in roads, electricity, water and other essential infrastructure, including in Greater Kampala, to support construction activities and attract private investment.

On public sector accountability, Musasizi said Government would advance digitisation and procurement reforms to strengthen transparency, curb corruption and protect value for money in public investments.

He challenged participants to develop practical recommendations that would reduce the cost and time required to undertake construction projects, improve the competitiveness of Ugandan firms and attract long-term investment.

He further called for each proposal to identify the responsible institution and specify what it should deliver within a clear timeframe.

The PSST, Dr Ggoobi, reinforced the need for coordinated reforms, saying a competitive construction industry supports the wider economy by enabling infrastructure development and creating opportunities for local contractors, manufacturers, professionals and workers.

Under the Fourth National Development Plan (NDP IV), Government targets to increase the paved share of national roads from 29 per cent to 33 per cent, raise rail's share of cargo transportation from 3 per cent to 20 per cent and reduce the housing deficit from 2.4 million to 1.9 million units.

Ggoobi said infrastructure investments must translate into tangible economic benefits, including lower transport costs, reliable electricity and more affordable development.

He stressed the importance of proper project preparation, coordinated provision of utilities and timely implementation to ensure that infrastructure investments deliver their intended results.

The Treasury chief also cautioned that increasing the participation of local contractors should go beyond awarding contracts to Ugandan companies.

He said indigenous firms must have access to affordable financing, equipment, technical expertise and effective management systems to complete projects to the required standards and within agreed timelines.

To address skills shortages, Government is strengthening practical training through the Technical and Vocational Education and Training (TVET) Council. The interventions include industry attachments, apprenticeships and competency-based certification to equip young Ugandans with skills demanded by the construction industry.

Ggoobi also highlighted improvements in land administration and building approval processes.

Through the Uganda National Land Information System and 22 Ministry of Lands Zonal Offices, land services are being brought closer to users, with land title processing time reportedly reducing from 180 days to 45 days.

The Building Industry Management System is also being used to digitise building permit applications, inspections, professional verification and fee payments.

Ggoobi called for better integration of building approval systems with land administration, business registration, taxation and professional regulatory systems.

He said businesses should be able to track applications, access information about requirements and fees upfront and receive decisions within published timelines. Electronic signatures should also help reduce unnecessary physical visits, costs and delays.

On financing, the PSST highlighted the Uganda Development Bank's Shs 150 billion Local Contractors Financing Initiative, which Government established to support indigenous contractors through affordable financing, equipment and capacity development.

Of the Shs 59.03 billion approved under the initiative, Shs 24.89 billion had been disbursed.

Ggoobi called for the challenges affecting the movement of approved financing into actual disbursements to be addressed, noting that funding should translate into completed construction projects.

The forum also reviewed Government's progress in responding to private sector concerns raised during the 2nd Doing Business Forum in 2025.

Presenting the update, Ms Dianah Nannono, Head of the Private Sector Development Unit, said Government had increased funding to the Uganda National Bureau of Standards (UNBS) to strengthen product certification, standards enforcement, laboratory operations and trade facilitation.

UNBS funding increased from Shs 55.9 billion in the 2024/25 financial year to Shs 133 billion in 2025/26, while a further Shs 130 billion was allocated for 2026/27.

The agency has also recruited 100 additional staff and invested in regional laboratories, modern testing equipment and digitalisation.

Government has also reduced electricity connection charges under the rural electrification programme. Connections requiring no poles were reduced from Shs 700,000 to Shs 30,000, while those requiring one pole were reduced from Shs 1.8 million to Shs 30,000.

For extra-large electricity consumers using more than 1.5 megawatts, an off-peak tariff of US$0.05 per kilowatt-hour has also been achieved.

Industrial park infrastructure was another area highlighted in the progress report, with funding for the Manufacturing Programme increasing from Shs 312 billion in 2025/26 to Shs 1.03 trillion in 2026/27.

At Namanve Industrial Park, infrastructure works covering approximately 45 kilometres of roads, bridges, drainage, electricity distribution, water, sewerage and ICT had reached 82 per cent completion by September 2026. Completion was expected by December 30, 2026.

At Mbale Industrial Park, Government approved Shs 146.39 billion for the 2026/27 financial year to support internal roads, drainage and electricity infrastructure. Road works had reached 50 per cent, while water supply and sewerage works stood at 40 per cent.

At Kapeeka Industrial Park, road construction had reached 29 per cent, while a contractor had been procured for the power substation.

Nannono said construction remains a foundational sector in Uganda's ambition to grow into a US$500 billion economy by 2040, supporting investments in agro-processing, industrial parks, tourism, real estate, housing and transport infrastructure.

She cited ongoing investments such as the Kampala Capital City Authority's upgrading of more than 78 kilometres of roads, a US$140 million African Development Bank facility supporting irrigation and agro-industrialisation in Bunyoro, and the development of a 320-million-litre fuel terminal in Mpigi.

She said these projects present opportunities for local contractors, engineers, transporters, farmers and manufacturers, but emphasised the need to strengthen the capacity of Ugandan businesses to execute contracts on time, within budget and to the required quality.

The housing discussion also highlighted the importance of mortgage refinancing in enabling financial institutions to provide longer-term housing loans.

Musasizi said expanding access to sustainable housing finance, alongside lower construction costs and improved planning systems, would be important in addressing the country's housing shortage.

Ggoobi said the discussions and recommendations from the forum would inform the FY2027/28 national budget and Government's medium-term reform priorities.

He called for an action matrix identifying each business constraint, the required intervention, the responsible institution, the delivery deadline and the measurable result.

He said the success of the forum should ultimately be judged by whether businesses experience faster government services, lower operating costs and greater certainty when investing.

The recommendations are expected to strengthen collaboration between Government and the private sector while supporting Uganda's wider Tenfold Growth Strategy through improved infrastructure, stronger domestic construction capacity and increased private investment.