Browse the complete Report on: Uganda Infrastructure Report Q3 2010
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Uganda’s construction sector has remarkably strong growth potential over the medium-term as the government launches a National Development Plan (NDP) for 2010/2011 to 2014/2015, overhauling the country’s socio-economic environment. A core component of the plan is infrastructure development across all sectors and BMI expects the construction sector to expand by as much as 15.01% in 2010 to UGX4.965bn (US$2.55bn) on the back of this investment.
The government’s NDP will help sustain strong growth as the country is expected to hit economic growth of 7.2% in the 2010/2011 financial year. The World Bank (WB) offered a US$1.97bn loan to Uganda to support the plan. The bank noted that while Uganda had maintained macroeconomic stability, it still faces constraints such as high population growth, regional disparities and weaknesses in governance and service delivery.
The Ministry of Works and Transport’s key objectives for 2010/2011 include the paving and maintenance of roads, traffic flow improvement in Kampala with a modern bus service, greater volumes of passenger and freight traffic on Uganda’s rail network as well as by air and sea. The government is also aiming to relieve pressure on Uganda’s roads by removing freight traffic from this mode of transport, which suffers from axle overloading as over 90% of freight and passenger movement takes place on the road network. Funds for road maintenance will be channelled through the Uganda Road Fund (URF), which will become operational in 2010-2011. The fund is expected to finance the maintenance of 21,000km in national roads, 22,500km in district roads and 5,000km in urban roads.
Meanwhile, the Ministry of Energy and Mineral Development’s main priorities are to expand power capacity and transmission lines, improve rural access to electricity partly through renewable energy, encourage oil exploration and building capacity and geoscientific data within the mining sector. The ministry hopes for a budget allocation of UGX482.46bn (US$210.28mn) for the financial year, which is 31% less than the ministry’s 2009-2010 approved budget of UGX698.93bn (US$304.63mn). The drop appears to be largely due to a sharp reduction in spending on hydropower development in the coming year. Uganda’s power generation capacity currently stands at around 500MW, which the country is working to ramp up to 780-820MW, while increasing rural electrification to 10%. The government is aiming to increase access to electricity for the overall population to 12% within 2010-2011 and to prevent load shedding altogether. The government wants electrification to reach as high as 20% by 2011. Overall, BMI expects to see an average real growth of 12.6% y-o-y in the construction sector between 2010 and 2014. By 2014 we expect the sector will register a real growth of 13.46%, growing to UGX9,880bn (US$6.27bn).


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Original Source : – Infrastructure Market
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Browse the complete Report on: Uganda Defence and Security Report Q3 2010
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Concerns are rising that Uganda’s 2011 elections may be marked by violence, while some have called the army’s neutrality into question. Analysts have asserted that violent outbreaks are possible, partly because the opposition feels that it has been marginalised in the political process. General Aronda Nyakairima, the chief of the Defence Forces, has stated that the army would step in to ‘deal with’ violence triggered by political disputes, and urged Ugandans to use legal means to resolve them. Opposition leaders have made statements in the past which have been interpreted as suggesting that constitutional avenues to changing the country are not functioning. They have also stated that the electoral commission (EC) is biased and discredited.
Gen Nyakairima has said that violence would not be allowed to break out and sought to cool fears of conflict. Felix Kulayigye, a member of the Ugandan People’s Defence Force (UPDF), as the army is known, wrote on Ugandan website The New Vision in June that widespread violence and vandalism were the inevitable result of riots in the country, and that the UPDF has a responsibility to step in to prevent them occurring.
Uganda continues to commit troops beyond its borders. Ten Ugandan troops were killed in the CAR in May 2010, Reuters reported the following month. The Ugandan soldiers had been searching out remaining Lord’s Resistance Army units in the CAR. However, in June 2010, Lt. Gen. Edward Katumba Wamala, the commander of Ugandan ground forces, said that the army would pull out of Somalia once stability has returned. It remains to be seen which definition of ‘stability achieved’ the Ugandan government and army use. Maintaining a force in Somalia is expensive, particularly for a relatively poor country like Uganda. The additional support from other African states will be valuable, but a timeline for withdrawal, and a strategy for Somalia’s future, are far from apparent. Uganda will both be keen to avoid getting bogged down in an intractable conflict for several years, but equally will look to enhance stability in the Horn of Africa, an increasingly volatile but hugely strategically important area. It may also look to benefit from a visible expression of its ability to project power beyond its own borders, as a sign of what it sees as its growing status as a regional power.
Defence spending is on the rise in Africa. While global military spending has fallen by 35% since the end of the Cold War, in sub-Saharan Africa it has risen by more than a third, according to SPIRI. Indeed, Uganda’s military outlay had doubled between 1997 and 1998.
Meanwhile, the threat posed by militias and pirates has caused governments, companies and NGOs in Africa to invest in military equipment and protection. Industry insiders argue that defence is a growth sector for Africa and Uganda may look to capitalise in the longer term, though for the time being it remains largely an importer and consumer.

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