The Government of Uganda has secured a substantial $540 million (approx. UGX 2.1 trillion) from the World Bank, with $80 million of this amount being a grant, to fund the second phase of the Uganda Cities and Municipalities Infrastructure Development (UCMID) Program. This funding will focus on enhancing urban planning and management, improving climate-smart infrastructure, and boosting job creation, particularly in refugee-hosting districts. The program, which will run from 2026 to 2031, will be managed by the Ministry of Lands, Housing, and Urban Development. It aims to directly benefit an estimated 5.6 million people, including 1.6 million people from refugee-hosting areas. The UCMID program will be implemented across 10 regional cities, 26 municipalities, and 13 districts that host refugees.
The program will target several key areas to ensure the sustainable growth of Uganda’s urban regions. These include improving urban roads and mobility, enhancing drainage systems to mitigate flooding, promoting nature-based solutions and green infrastructure, implementing sustainable waste management systems, and creating opportunities for local economic development and job creation. By improving transportation and access to markets, the program aims to foster economic growth, connect people to jobs, and reduce congestion in major cities. Additionally, climate resilience will be a significant focus, with the program aiming to protect physical and economic assets from the impacts of flooding and other climate-related challenges. A key aspect of the UCMID program is the creation of approximately 20,000 permanent jobs, 5,000 of which will be for people from refugee-hosting communities.
UCMID is set to address the rapid urbanization Uganda is experiencing, as the country’s urban population is growing at a rate of 5.2% annually. With an estimated 70% of Uganda’s GDP generated in urban areas, the program will support this growth by providing essential infrastructure, services, and jobs. Regional cities and municipalities are increasingly becoming hubs for economic activities, and UCMID will focus on turning them into engines of growth, especially for youth, women, and low-income groups. The program aligns with Uganda’s Vision 2040 and the Fourth National Development Plan (NDP IV), which aims to create 2.5 million new jobs and achieve higher household incomes. Through these efforts, UCMID is expected to significantly contribute to Uganda’s economic transformation.
As part of the program, the UCMID funds will be allocated to local governments to support the development of urban infrastructure in cities, municipalities, and refugee-hosting districts. In particular, the program will focus on improving urban roads, promoting climate-resilient infrastructure, and enhancing waste management and flood control systems. These investments will not only improve living conditions but also foster inclusive economic growth by creating better job opportunities, especially for marginalized groups such as women and youth. By strengthening local governance and building institutional capacity, UCMID aims to ensure that Uganda’s cities can effectively manage and sustain urban growth while promoting environmental sustainability.
The next steps for UCMID involve finalizing legal agreements between the Government of Uganda and the World Bank, followed by procurement processes for various infrastructure works. Local governments are urged to ensure that all environmental and social safeguards are met to facilitate the smooth start of projects in the upcoming fiscal year. With the support and cooperation of all relevant government ministries, UCMID is poised to make a significant impact on Uganda’s urban development, creating a more sustainable, climate-resilient, and economically vibrant future for its citizens. For further inquiries, media representatives can contact Mr. Joseph Pade Walter, Program Coordinator, at 0776 608 758, or Ms. Sheila Naturinda, Program Communications Specialist, at 0782316546.
