Private sector strategy for construction and real estate launched, minister reaffirms commitment

10 April 2025, 8:57 pm

By Ronald Ssemagonja

The Minister of State for Housing and Urban Development, Hon. Persis Namuganza, has confirmed the government’s commitment to continuously supporting the private sector. “I thank the Private Sector Foundation Uganda for organising this launch. By all means, the government must support this sector because we want it to thrive,” she stated. The minister expressed concern about real estate developers who do not adhere to instructions and guidelines from the responsible authorities and urged them to operate within the law. This was during the launch of the Private Sector Strategy for Construction and Real Estate, which was themed, “Rekindling Competitiveness and Growth of Indigenous Construction and Real Estate Firms for Job Creation,” at Fairway Hotel in Kampala.

The Vice Chairman of the Board of Directors at Private Sector Foundation Uganda (PSFU), Sarah Kagingo, in her remarks, applauded the Government, development partners, members of the private sector, and all other stakeholders for enabling the historic launch. “This is a landmark moment for Uganda’s construction sector and a bold step towards rekindling competitiveness, fostering growth, and acknowledging the transformative potential of our indigenous construction and real estate firms. The theme of this strategy,” she said.

She went on to state that as Uganda progresses towards its Vision 2040 of becoming a modern, prosperous nation, the construction and real estate sectors are critical pillars of the country’s economic transformation. “Your industry does not merely build structures; you lay the foundation for progress—housing our families, creating spaces for businesses to thrive, and driving infrastructure that connects communities. You hold the key to creating jobs for young people who represent both our present and future. Let’s look at the numbers to grasp the potential at stake. The construction sector alone contributes approximately 13% to Uganda’s GDP, over 40 trillion Uganda Shillings annually, and employs more than 1.2 million people directly and indirectly. Meanwhile, the real estate sector, growing at an estimated 8% per year, is valued at over 20 trillion Shillings, fuelled by rapid urbanisation and a housing deficit of 2.4 million units,” Kagingo noted.

In her conclusion, Kagingo, like the Minister, reaffirmed their commitment, particularly to the construction and real estate sectors, which, according to her, are poised to drive job creation and economic inclusion like never before. “This strategy is not just a document; it is a roadmap for action. It outlines clear, actionable steps to address the challenges facing indigenous firms’ access to affordable financing, capacity building, regulatory hurdles, and market competitiveness. I call on all stakeholders to rally behind the strategy we launch today to rekindle competitiveness across Uganda. Together, we can build not just buildings but a legacy of prosperity for generations to come,” she said.

The Private Sector Foundation Uganda understands that a vibrant private sector is the engine of economic growth. Since its inception in 1995, PSFU has championed the cause of Ugandan businesses, advocating for policies that attract investment, enhance productivity, and create an environment for growth. Dr. Paul Wabiga from Makerere University’s School of Economics stated that what needs to be done for Ugandans to have affordable housing is to transform the local construction sub-sector by putting in place interventions that help it grow with government support. Shirley Kongai, a council member of the Real Estate Institute of East Africa, applauded the government for attempting to support the sector. However, she noted that much more needs to be done for the sector to truly thrive.