Kampala heads for 10m by year 2020

CROWDED: Uganda’s urban centres led by Kampala, are growing at twice the speed of the country’s rural populations.

By John Sambo
Monday, May 11, 2015

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ENTEBBE, Uganda - Kampala, the Ugandan capital, is projected to become a mega-city of over 10 million by 2030.

During a five-day intensive training stint involving 35 Local Governments (LGs) and organised under the City Creditworthiness Initiative, participants were told between 2002 and 2010, Uganda’s urban population grew by 5.6 percent, almost twice as fast as the rural population.

Paid for by the World Bank, the City Creditworthiness Academy, provided LGs insights in matters of financial management of the available assets, as well as assessing the extent of liabilities at their level.

The Ministry of Lands, Housing and Urban Development also had a hand in organising the gathering.

Sam Engola, the State Minister for Housing said last week, “It is estimated that in Uganda, the urban sector contributes up to 70% of the GDP. Government is therefore committed to ensuring that an enabling environment is provided to mane the urban sector more competitive to attract investment and stimulate economic growth.”

The training also helped to catalyze investment for municipal projects to cater for the rapid increasing population.

Martin Onyach-Olaa, a Senior Urban and Rural Development Specialist said, “For Uganda to achieve her dream of becoming a middle-income country by 2040, the urban sector will play a central role given its contribution of 70% towards the GDP.

“However, improved financial management will be critical to address the challenges that come with urbanization.”

According to the World Bank office in Kampala, the rapid rates of urbanization have escalated the importance and need for extending the City Creditworthiness Academy to Uganda.

At the same time, the investment needs are mounting, decentralization initiatives are transferring greater responsibility for investment choices and investment financing from central government to local and state governments. Prudent financial management are impelling all levels of government to try and establish financial intermediaries of this kind.

Onyach-Olaa said, “Government alone cannot provide the resources required for urban development. It has to empower municipalities with knowledge to spearhead preparation of their respective cities and municipalities to participate in the finance market.”

LGs will now better understand capital investment plans, the fundamentals of financial management, how to make climate smart capital investment plans, debt management and best practices on own source revenue generation enhancement.

They also are in a beter position to assess their credit risk.

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