The State Minister for Lands, Housing and Urban Development (Lands), Hon. Persis
Princess Namuganza, has called on players in Uganda’s construction and real estate
sector to prioritize quality, affordability, and fiscal planning in order to address the
country’s growing housing needs.
Speaking at the launch of the Private Sector Strategy for the Construction and Real
Estate Industry in Uganda,under the theme “Rekindling Competitiveness and Growth of
Indigenous Construction and Real Estate Job Creation,” Minister Namuganza
emphasized the urgent need for decent, affordable housing, especially for urban
dwellers and evicted communities.
“There are people who sleep on the streets every night. People who have been evicted
from wetlands and protected areas. The accommodations being built look good on
paper, but in reality, they are not fit for the people,” she said.
The Minister decried the shrinking living space in urban developments and criticized
developers for focusing on aesthetics rather than livability.
“Why are you allowing people to put up structures that can’t even accommodate a
family with three children? This is not development,” she said, noting that housing
developments should support the well-being of families and communities.
Namuganza also urged real estate developers to align their efforts with government
fiscal planning goals.
“Mine is quality, quality, quality. When you come with quality as government, we are
going to support you and move with you. But you must also be within fiscal planning
frameworks,” she said.
Citing the potential of the private sector to transform Uganda’s housing landscape,
Namuganza encouraged developers to seize the opportunity to build affordable homes
that reflect both function and form.
“Uganda is a beautiful country. If we organize it in terms of construction and
settlements, we are going to make it even more beautiful,” she said.
The Minister urge real estates players to embrace innovation, inclusivity, and
accountability.
“If we had someone putting up massive affordable housing projects, we wouldn’t waste
time convincing Cabinet. There are many tenants to be housed, and the government is
ready to work with serious developers,” Namuganza added.
Sarah Kagingo, Vice Chairperson of the Board of Directors at the Private Sector
Foundation Uganda (PSFU)described the National Private Sector Construction and
Real Estate Strategy as a “bold step” in empowering Ugandan companies to drive
economic transformation.
She emphasized the construction sector’s contribution of 13% to Uganda’s
GDP—amounting to over UGX 40 trillion annually—and the employment of more than
1.2 million people. The real estate sector, valued at over UGX 20 trillion and growing at
8% annually, also holds vast potential due to Uganda’s rapid urbanization and a
housing deficit of 2.4 million units.
Despite the size and growth of these sectors, Ugandan firms currently account for less
than 20% of major high-value contracts.
“This strategy aims to change that narrative and double local participation to 60% within
the next five years. With this strategy in place shall generate an additional UGX 15
trillion in revenue and over 500,000 new jobs.”Kagingo stated.
According to Kagingo the new strategy outlines actionable steps to addressing key
challenges facing local firms, like access to finance, regulatory burdens, and skill
development. The strategy also encourages stronger partnerships between
government, private entities, and development partners to level the playing field for
indigenous businesses.
“This is not just a document—it’s a roadmap.Imagine a Uganda where our roads,
schools, and urban centers are built by Ugandan firms. Where our engineers and
artisans find dignified work at home. That is the Uganda we are building, starting today.”
Kagingo said.
Private sector Foundation Uganda (PSFU) is Uganda’s apex body for the private sector
made up of 300 Business Associations, Corporate bodies and the major Public Sector
Agencies that support private sector growth. Since its founding in 1995, PSFU has
served as a focal point for private sector advocacy as well as capacity building and
continues to sustain a positive dialogue with Government on behalf of the private sector.
PSFU is also Government’s implementation partner for several projects and
programmes aimed at strengthening the private sector as an engine of economic growth
in Uganda.