Inadequate power and poorly maintained roads have held back Uganda's growth by 3 per cent and hindered the country's ability to enhance trade relations. Currently, only 5 per cent of Uganda's population is connected to the national power grid, while only 15 per cent, or 7,300km of Uganda's 65,800km road network is covered in premix tarmac or surface dressing asphalt. The country's rail is in a state of disrepair and similarly, its housing developments are reeling under the effects of mismanagement. Sparse telecommunication infrastructure had compelled citizens to migrate to the mobile platform, while water and sanitation is available only in the urban centres, which hosts less than 15 per cent of the population. Poor implementation of measures and inconsistent investments to address maintenance, repair and construction issues has led to the decay of several government-managed subsectors. This deplorable state of infrastructure has even delayed the production of newly discovered oil resources in the Lake Albert region.
Inconsistent maintenance of basic infrastructure across a broad range of subsectors has widened the gap between demand and supply. The government is currently attempting to resolve this issue by encouraging public-private partnerships, and implementing large-scale infrastructure repair and maintenance programs. The government has already committed $400 million to road improvement projects over the next two years. It has also allocated another $900 million to the development of Priority Proposed Projects by 2015. It needs to actively seek and promote long-lasting partnerships that will facilitate the continuous improvement of infrastructure in the country. The introduction of long-term, reliable partners will aid the government in improving service delivery, and in turn, promoting economic growth.
Despite the numerous challenges thrown up by the poor state of infrastructure, the sector presents numerous investment opportunities. Uganda has been experiencing rapid economic growth and recently, the economy got a further boost with the discovery of oil. The combination of economic progress and a rapidly expanding population that needs access to amenities such as power, drinking water and sanitation make Uganda an ideal stage for the development of new and improved infrastructure.
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Infrastructure Scope:
- Energy and power
- Social infrastructure
- Water and sanitation
Click for Report details:African Infrastructure Tracker: Uganda's Infrastructure Sectors