Private sector strategy for construction and real estate launched

By Hakim Wampamba | Thursday, April 10, 2025
Private sector strategy for construction and real estate launched
Unless the government works collaboratively with the private sector, the value of less than 20% of the entire construction revenues will continue accruing to Ugandan firms. We need guarantees and incentives to scale and compete

The Private Sector Foundation Uganda (PSFU) has officially launched the Private Sector Construction and Real Estate Strategy 2024–2034, a ten-year roadmap aimed at empowering indigenous construction and real estate firms, creating jobs, and increasing local participation in large-scale infrastructure projects.

The launch comes at a critical time when Uganda’s construction sector contributes approximately 13% to the national GDPover Shs 40 trillion and employs more than 1.2 million people.

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The real estate sector, growing at an average rate of 8% annually, is valued at around 20 trillion shillings. Despite this, local firms account for less than 20% of high-value contracts.

Sarah Kagingo, the Vice Chairperson of PSFU, described the strategy as a turning point for Uganda’s private sector.

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"This strategy is a bold step toward unlocking the transformative potential of our indigenous firms.

It is about creating meaningful jobs and ensuring Ugandan companies benefit from the massive investments in construction and real estate," Kagingo said.

Shirley Kongai, the Head of Real Estate and Construction at PSFU, emphasised the need for government support.

"Unless the government works collaboratively with the private sector, the value of less than 20% of the entire construction revenues will continue accruing to Ugandan firms. We need guarantees and incentives to scale and compete," Kongai stated.

To address these gaps, the strategy sets a target to double the participation of local firms in major projects to 60% within five years a move expected to generate over 500,000 new jobs across various disciplines including engineering, architecture, and construction supply chains.

State Minister for Housing and Urban Development, Persis Namuganza, said the government is taking regulatory steps to support the sector.

"We are in advanced stages of enacting a real estate law that will protect the sector and promote quality development. Developers putting up substandard apartments have been warned in advance," she cautioned.

The new strategy also calls for partnerships with development partners, improved access to affordable financing, and targeted skills development for Uganda’s workforce.

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