How should Uganda finance infrastructure development?
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 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). Already, Government plans to spend about UGX 8.5 trillion or approximately 37.5 percent of the entire 2017/2018 budget on the works & transport (24.3 %) and energy & mineral development (13.2 %) sectors. These planned expenditures are huge and will necessitate the consideration of alternative and innovative financing vehicles to avoid crowding out other developments in the economy, such as service delivery in agriculture,