Uganda’s construction industry took center stage this week as key players gathered to address pressing challenges and explore opportunities for growth. The Uganda National Association of Builders, Supplies, and Engineering Contractors (UNABSEC) hosted a high-level dialogue in Kampala on June 19, bringing together government officials, contractors, and financial institutions to discuss the future of the sector.

The meeting, themed “Unlocking Sector Growth through Inclusive Procurement and Sustainable Financing Solutions,” came at a critical time for Uganda’s construction industry. Minister of Works and Transport General Katumba Wamala sought to reassure contractors amid recent changes in the sector, particularly the dissolution of the Uganda National Roads Authority (UNRA). He emphasized that ongoing projects would not be affected and that contractor payments would be honored.

“We understand your concerns, but let me assure you that your works are safe,” General Katumba told attendees. “The government remains committed to ensuring all contractors are paid for their work.” The minister revealed that while the government currently faces a backlog of approximately Shs 1.3 trillion in unpaid contracts, about Shs 664 billion remains to be cleared. He promised that these outstanding payments would be addressed.

Looking ahead, General Katumba highlighted several major infrastructure projects on the horizon, including the Standard Gauge Railway and the Jinja-Kampala Highway, with contracts for the latter set to be signed on July 4. He also reaffirmed the government’s policy of reserving 30% of all contracts for local contractors, a move designed to boost Ugandan businesses in the construction sector.

The dialogue also tackled one of the industry’s most persistent challenges: access to financing. UNABSEC President Kiara Binta Nkuranga stressed the need for stronger partnerships between contractors and financial institutions. “We must rebuild trust between contractors and financiers,” she said. “The construction sector needs reliable financing solutions that understand our unique challenges.” Nkuranga pointed to successful models in countries like Nigeria and Singapore as potential examples for Uganda to follow.

Banking representatives acknowledged these concerns. Godfrey Ssebaana from Diamond Trust Bank, speaking on behalf of the Uganda Bankers Association, proposed specific financial products tailored to contractors’ needs, including documentary credit facilities with favorable interest rates for companies with stable cash flows.

Procurement processes also came under scrutiny during the discussions. Benson Turamye, Executive Director of the Public Procurement and Disposal of Public Assets Authority (PPDA), emphasized the critical role of procurement in national development. “Our focus is on creating an environment where local contractors can thrive,” Turamye said. “When we support local businesses, we’re investing in Uganda’s future.”

Seasoned industry leaders shared practical insights from their experiences. Dr. Apollo Buregeya, Managing Director of Eco Concrete, and Nicholas Byengoma, Founder Member of UNABSEC and Managing Director of NICONTRA Uganda Ltd, offered concrete suggestions for improving the sector’s performance and sustainability. Their contributions highlighted both the challenges facing contractors and potential pathways to growth.

The dialogue represented an important step in aligning the priorities of government, contractors, and financial institutions. As Uganda prepares to embark on major infrastructure projects, the discussions underscored the need for continued collaboration to ensure the construction sector’s stability and expansion. With commitments from government officials and concrete proposals from financial institutions, participants left the meeting with cautious optimism about the sector’s future.

As the construction industry looks ahead, the success of these initiatives will depend on their implementation. Contractors will be watching closely to see if promised payments materialize and whether financing solutions become more accessible. For now, the dialogue has opened important channels of communication that could help build a stronger foundation for Uganda’s construction sector in the years to come.