The World Bank has approved significant funding packages for Uganda, including a $540 million (approx. Shs2.03 trillion) Uganda Cities and Municipalities infrastructure Development Program (UCMID) program and new financing exceeding $2 billion to support development, infrastructure, and refugee-hosting areas, following a temporary freeze.
This funding aims to boost urban development, infrastructure, and job creation.
The five six-year, $540 million (Shs2.03 trillion) project will facilitate the construction of modern infrastructure in at least 10 cities that will include Jinja, Mbarara, Gulu, Arua, Masaka, Hoima, Mbale, Soroti, Lira, Fort Portal.
The project will also cater for 26 municipalities, and 13 refugee-hosting districts.
Officials said over a five year period the development projects spread across the country will facilitated the creation of not less than 40,000 direct jobs out of which 20,000 will be permanent.
The approved financing followed protracted negotiations between Kampala and World Bank in Washington DC following three year loans freeze in 2023 due the passing of the anti-homosexuality law.
Officials indicated that the new financing will focus on climate-smart infrastructure, waste management, road improvement, and supporting refugee-hosting communities.
Uganda has successfully utilized World Bank finances under the USMID project which was headed by Dr. Eng. Isaac Mutenyo -that has transformed cities and municipalities –creating thousand of jobs across the country and boosting trade.
Under Uganda Support to Municipal Infrastructure Development (USMID) Cities and Municipalities have seen notable environmental and socio-economic improvements, including better roads, drainage, waste management, public cleanliness, and restored green spaces.
These upgrades have enhanced air quality, reduced congestion, and flooding, and improved urban service delivery. Socio-economic gains include modernized markets, improved access to schools and health centers, increased safety through lighting and walkways, job creation, boosted local investments- which contributes to improved city/municipal services.
