The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | URN | Uganda has secured over 2.1 trillion Shillings (USD 540 million ) funding from the World Bank to improve the management of cities and municipalities.
The initiative aims to improve urban management, expand climate-smart infrastructure, and create jobs for both residents and refugees in ten cities, 26 municipalities, and 13 refugee-hosting districts.
The six-year Uganda Cities and Municipalities Infrastructure Development (UCMID) programme is also aimed at expanding access to climate-smart infrastructure, services, and jobs for urban residents and displaced populations in refugee-hosting areas.
The programme builds on the achievements of its predecessor, USMID, consolidating gains in sustainable urban development and economic growth across Uganda.
USD 429 million from the funding is in the form of an IDA Credit, while USD 80 million is an IDA grant, and the remaining USD 31 million is an IDA shorter maturity loan.
The appraisal of the programme says that most urban areas in Uganda rely on “basic” plans that are neither integrated with spatial nor economic development strategies.
“Unplanned urban sprawl has led to higher infrastructure costs, environmental degradation, pollution, and increased flooding,” it notes, adding that planning is critical, especially as the urban population, now at 27 percent of the total (according to the 2024 census), is expected to surpass the rural population.
With USD 540 million in financing from the World Bank’s International Development Association (IDA), UCMID is expected to deliver improved access to essential urban infrastructure and services such as all-weather roads, stormwater drainage, street lighting, public markets, and other urban amenities.
These investments should enhance mobility, reduce flood risks, and improve public safety, while also stimulating local economic activity, according to the Bank.
“With Uganda’s urban population projected to more than double in the next two decades, it is essential that this rapid expansion translates into productive jobs for a youthful labor force rather than resulting in fragmented urban sprawl and increased informality,” says Francisca Ayodeji (Ayo) Akala, World Bank Country Manager for Uganda.
Uganda’s rapid urbanisation is facing climate-related issues, especially floods, with cities and municipalities like Jinja, Kampala, Kasese, Kisoro, and Mbale periodically facing floods.
”UCMID is aimed at supporting local governments to deliver climate-smart infrastructure that reduces flooding, improves mobility, and creates opportunities for youth and women.
”Importantly, the programme will also strengthen services and livelihoods in refugee-hosting areas, so that refugees and their hosts can benefit together from safer, more productive towns and cities,” says Akala.
The programme is also expected to spur the creation of at least 40,000 direct jobs, including 20,000 permanent ones in operations and services, and an equal number through short-term work during construction.
Improved infrastructure and local economic development should catalyse additional private sector employment further down the line.
UCMID is the successor of the Programme for Results Uganda Support to Municipal Infrastructure Development (USMID) Program, which closed in 2024 and whose achievements the new programme seeks to consolidate.
The Ministry of Lands, Housing and Urban Development leads UCMID coordination and implementation, with involvement from the Ministry of Local Government.
USMID, which was launched in 2013, aimed to support Uganda in attaining sustainable urbanisation in line with the National Development Plans.
It targeted 14 municipalities and 11 refugee-hosting districts for the construction of urban infrastructure.
The World Bank pledged USD 160 million as well as technical support to the implementing authorities, and added another USD 360 million in 2019 to expand the programme.
On the performance of USMID, Isaac Mutenyo, the programme national coordinator for the USMID programme, described it as successful across all the projects across the four regions.
“From Arua spanning across to Kabale in the far west, to Busia in the far east, Ugandans have felt the benefits of the programme, with over 215km of all-weather roads constructed, 1,800 street lights erected, and over 40km of cycling, bus, and parking infrastructure installed,” he says, also citing a community satisfaction survey in 2021 that returned 94 percent satisfaction.
Implemented by the Ministry of Land, Housing and Urban Development, UCMID will add another 15 municipal governments.
These include Bugiri, Bushenyi-Ishaka, Ibanda, Iganga, Kapchorwa, Kisoro, Kotido, Koboko, Kumi, Masindi, Mityana, Nebbi, Njeru, Rukungiri, and Sheema, to those that benefited from USMID.
The 13 Refugee-Hosting Districts of Adjumani, Arua, Isingiro, Kamwenge, Kikuube, Kiryandongo, Kyegegwa, Lamwo, Madi-Okollo, Moyo, Obongi, Terego, and Yumbe will also benefit.
The ten cities are Arua, Fort Portal, Gulu, Hoima, Jinja, Lira, Mbale, Mbarara, Masaka, and Soroti.
USMID benefited the Municipalities of Apac, Busia, Kabale, Kamuli, Kasese, Kitgum, Lugazi, Moroto, Mubende, Ntungamo, and Tororo.
