How should Uganda finance infrastructure development?

Abstract

Although Uganda has made progress in infrastructure development, the country still faces huge deficits across all sectors, including in transport, energy, water and information and communication technology that require financing beyond the public budget ceilings. These deficits in infrastructural provisioning affect the business climate and increase the cost of doing business with implications for enterprise growth and job creation. In addition, infrastructural deficits exacerbate poverty and inequality and could therefore hinder the attainment of the sustainable development goals (SDGs). Addressing these deficits will require financing beyond the available public budget ceilings. This policy brief, based upon a recent research paper1, explores options for financing the scaling up of infrastructure development in Uganda. The analysis highlights the opportunities for scaling up domestic resource mobilization, improving efficiencies in public investments, options in private financing, and the potential role of the natural resource sectors.