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Local Governments Embrace Innovative Financing Framework for Infrastructure Development

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Local governments across the country continue to struggle with funding for infrastructure development.  The government of Uganda has been exploring ways to enhance the financial autonomy of local governments, including improving their capacity to borrow responsibly for development projects. This includes capacity-building initiatives and reforms to streamline the borrowing process albeit with little success.  This is because of the stringent laws surrounding borrowing as well as the local government’s creditworthiness, which is influenced by factors such as revenue collection efficiency and financial management practices, affects its ability to borrow and the terms of borrowing.

It is against this background that researchers from the School of Business partnered with United nations Capital Development Fund to undertake a study on “Enabling new Cites to Access Private Capital for Local Investments.” The research team, led by Dr. Yusuf Kiwala, who undertook a study of Arua and Mbale city, have proposed a framework, which if adopted could help local government address their development challenges.

In a groundbreaking move, local governments in Uganda are set to revolutionize their approach to funding infrastructure projects with the introduction of a comprehensive financing framework. This new strategy aims to enhance collaboration between public and private sectors, ensuring sustainable development across the country.

Dr. Yusuf Kiwala. School of Business, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala, Uganda, East Africa partnership with United Nations Capital Development Fund (UNCDF) to undertake a study on “Enabling new Cites to Access Private Capital for Local Investments.” for Arua and Mbale Cities, research dissemination, 1st August 2024, Mbale City. Research Team Lead: Dr. Yusuf Kiwala.
Dr. Yusuf Kiwala.

Speaking during the dissemination workshop in Mbale City on August 1, 2024, Dr Kiwala while unveiling the framework said the new financing framework is built on several key elements, each designed to address specific aspects of funding infrastructure projects. These elements include the contribution of resources by various actors, diverse funding sources, external triggers of change, financing instruments, and financing structures.

  1. Actors Contributing Resources: The framework emphasizes collaboration and community engagement. It involves a range of stakeholders, including government entities, private investors, and commercial lenders, working together to pool resources and share risks.
  2. Funding Sources: The framework taps into multiple funding sources, both public and private. National, international, and local governments, along with donors and impact investors, are expected to play significant roles in financing infrastructure initiatives.
  3. External Triggers of Change: This element focuses on the various external factors that can initiate or accelerate infrastructure projects. These include regulatory changes, market forces, economic incentives, and financial reforms.
  4. Financing Instruments: A variety of financing instruments are available under the framework. These include grants, equity investments, short-term and long-term loans, user fees, loan rebates, bonds, and guarantees. This diversity allows for flexibility and adaptability in funding approaches.
  5. Financing Structures: The framework incorporates innovative financing structures such as pooled finance, special purpose vehicles, revolving funds, project finance, public-private partnerships (PPPs), and leasing arrangements. These structures are designed to enhance financial stability and efficiency in project implementation.
Left to Right: Dr. Yusuf Kiwala, Mr. Julius Masereka, Ms. Annet Nandudu and another official. School of Business, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala, Uganda, East Africa partnership with United Nations Capital Development Fund (UNCDF) to undertake a study on “Enabling new Cites to Access Private Capital for Local Investments.” for Arua and Mbale Cities, research dissemination, 1st August 2024, Mbale City. Research Team Lead: Dr. Yusuf Kiwala.

The new framework outlines specific mechanisms to operationalize these elements. These mechanisms include:

  • Collaboration and community engagement to foster collective ownership of projects.
  • Funding from a mix of government sources, donors, and commercial lenders.
  • Regulatory and market-driven changes that create conducive environments for infrastructure investments.
  • A wide range of financial instruments to meet the diverse needs of projects.
  • Structured financing options to ensure robust and sustainable funding models.

Impact and Future Prospects

This innovative financing framework is poised to transform the landscape of infrastructure development in Uganda. By leveraging diverse funding sources and adopting flexible financing structures, local governments will be better equipped to undertake critical infrastructure projects that drive economic growth and improve public services.

Ms. Annet Nandudu. School of Business, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala, Uganda, East Africa partnership with United Nations Capital Development Fund (UNCDF) to undertake a study on “Enabling new Cites to Access Private Capital for Local Investments.” for Arua and Mbale Cities, research dissemination, 1st August 2024, Mbale City. Research Team Lead: Dr. Yusuf Kiwala.
Ms. Annet Nandudu.

The introduction of this framework also signals a shift towards more inclusive and sustainable development practices. With community engagement and risk-sharing at its core, the framework ensures that infrastructure projects are not only financially viable but also socially equitable.

As Uganda embarks on this new path, the success of the financing framework will likely serve as a model for other developing countries facing similar challenges in funding infrastructure development. The future looks promising as local governments, in collaboration with various stakeholders, pave the way for a brighter and more prosperous Uganda.

The Principal Assistant Town clerk – Northern Division, Ms. Annet Nandudu, expressed optimism for the future, saying that with continued collaboration and strategic planning, the challenges can be overcome. Ms. Nandudu the importance of transparency and accountability in the financing framework to ensure that resources are utilized efficiently and effectively. She also highlighted the need for ongoing capacity building to strengthen local government institutions and empower communities to participate in decision-making processes.

Mr. Julius Masereka. School of Business, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala, Uganda, East Africa partnership with United Nations Capital Development Fund (UNCDF) to undertake a study on “Enabling new Cites to Access Private Capital for Local Investments.” for Arua and Mbale Cities, research dissemination, 1st August 2024, Mbale City. Research Team Lead: Dr. Yusuf Kiwala.
Mr. Julius Masereka.

On his part, Mr. Julius Masereka, Principal Urban Officer, Ministry of Local Government, said the government was committed to the successful implementation of such initiatives. He emphasized the importance of collaboration between the government and local communities to ensure sustainable development. He called on the LGs to write bankable projects so that they can access funding from various sources and contribute to the overall development of their communities.

Research team

Dr. Yusuf Kiwala
Mr. Kanakulya Ronald
Ms. Maureen Nandaula
Dr. Kintu Ismail

Betty Kyakuwa
Betty Kyakuwa

Business & Management

Call For Applications: Student Mobility – University of Padova, Italy (Oct 2026-Jan 2027)

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Group Photo of the trainers and trainees that took part in the workshop on multivariate statistics and time series analysis, held 11th-20th June 2024 between the School of Statistics and Planning, CoBAMS and University of Padova, Italy. Makerere University School of Statistics and Planning-University of Padova, Italy dynamic workshop on multivariate statistics and time series analysis, 11th to 20th June 2024, Makerere University, Kampala Uganda, East Africa.

Arising from an existing Memorandum of Understanding (until September 2028) between University of Padova, Italy (UniPd) and Makerere University (Mak), the two institutions partnered and will jointly implement the Bilateral Agreement for the mobility for students between 2026 and 2027. At Mak, the Departmental Flow Coordinator is Symon Peter Wandiembe (PhD) and the project Principal Investigator and Contact Person is Saint Kizito Omala (PhD), both of Department of Statistical Methods and Actuarial Science (DSMAS).

In this regard, the Department of Statistical Methods and Actuarial Science wishes to announce opportunities for student mobility to the Department of Statistical Sciences, University of Padova, Italy for the Winter Semester, October 2026 – January 2027.

The selection process shall entail five-steps:

  • Step 1: Submission of documents by candidates for nomination, with an internal deadline of April 20th, 2026, 05.00 p.m. (EAT) to allow for time to process nomination applications;
  • Step 2: Meeting of the Nomination Committee to review documents received from applicants;
  • Step 3: Submitting the list of nominated candidates, by April 30th, 2026, to the International Projects and Mobility Office of the University of Padua, Italy;
  • Step 4: Eligibility check and communication to successful candidates by the International Projects and Mobility Office of the University of Padua, Italy; and
  • Step 5: Application for the Mobility opportunity by successful candidates.

Please see download for detailed call.

Inquiry

S.K. Omala via +256 772 491545 before April 20th, 2026.

Mak Editor

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Business & Management

Mak CoBAMS Hosts UNISA’s Dr. Sizile Makola

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L-R: Dr. Zaina Nakabuye, Dr. Jude Mugarura, Dr. Agnes Sansa, Dr. Sizile Makola, Prof Edward Bbaale and Dr. Anthony Tibaingana at the 8th April 2026 meeting in the Office of the Principal. Principal of the College of Business and Management Sciences (CoBAMS), Prof. Edward Bbaale welcomes Dr. Sizile Makola, a Senior Lecturer in Human Resource Management from the University of South Africa (UNISA), to the College and Makerere University, Kampala Uganda, East Africa, 8th April 2026.

On Wednesday 8th April 2026 the Principal of the College of Business and Management Sciences (CoBAMS), Prof. Edward Bbaale received and welcomed, Dr. Sizile Makola, a Senior Lecturer in Human Resource Management from the University of South Africa (UNISA), to the College and Makerere University.

The interaction meeting held in the Office of the Principal brought onboard the following members of staff from the Department of Marketing and Management, School of Business: Dr. Jude Mugarura, Dr. Zaina Nakabuye, Dr. Agnes Sansa, and Dr. Anthony Tibaingana.

Dr.Sizile Makola is visiting Makerere University for two (2) weeks to cement the MoU between Makerere University and UNISA and to finalise her comparative studies with staff from the department of marketing and management on behalf of Makerere University for the Ugandan context.

Dr. Makola is scheduled to deliver an interactive guest lecture to undergraduate and postgraduate human resource management students on Friday 10th April 2026 from 2:00pm to 4:00pm in the School of Business, Conference Hall.

Guest Lecture on Re-Imagining Human Resource Management in Africa, Topic: Integrating Indigenous Knowledge and Organizational Practice, Keynote Speaker: Dr. Sizile Makola. Senior Lecturer in Human Resource Management from the University of South Africa (UNISA), 10th April 2026, 2:00-4:00PM, The Conference Room, Level 2, Block B, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala Uganda, East Africa.
The Guest Lecture Poster.

Ritah Namisango
Ritah Namisango

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Business & Management

Mak CoBAMS holds strategic partnership engagement with World Bank

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L-R: Cyril Desponts, Hassan Zamani, Prof. Edward Bbaale, Assoc. Prof. Eria Hisali, Liz Mukasa Samula, and Assoc. Prof. Ibrahim Mike Okumu. Strategic partnership engagement with delegation from the World Bank ahead of the African Meeting of the Econometric Society scheduled to take place in June 2027 preceded by the Econometric Society Summer School, 1st April 2026, Office of the Principal, College of Business and Management Sciences (CoBAMS), Makerere University, Kampala Uganda, East Africa.

On 1st April 2026, the Principal of the College of Business and Management Sciences (CoBAMS) at Makerere University, Professor Edward Bbaale hosted a delegation from the World Bank for a strategic partnership engagement ahead of the African Meeting of the Econometric Society scheduled to take place in June 2027. The International engagement will be preceded by the Econometric Society Summer School.

Focusing on macroeconomic stability, productivity, climate resilience, and youth employment, the African Meeting is expected to attract over 400 national and international participants. The Meeting has been deemed critical in advancing research and policy dialogue as well as planning and development across the continent.

The World Bank delegation consisted of Hassan Zaman-Regional Director for East Africa, Cyril Desponts-Country Senior Economist, and Liz Mukasa Samula-Country Economist. During the introduction, Liz Mukasa Samula stated that she is a proud alumnus of Makerere University, specifically, the College of Business and Management Sciences (CoBAMS).

At the College level, the meeting brought onboard, Professor Edward Bbaale, Associate Professor Eria Hisali, Associate Professor Ibrahim Mike Okumu, and Ritah Namisango.

Presentation by Mak CoBAMS

Welcoming the delegation, Prof. Bbaale presented the College of Business and Management Sciences as a centre of excellence in teaching and learning, research, policy engagement, knowledge transfer, and entrepreneurship.  Prof. Bbaale informed the delegation about the great works under the School of Economics, School of Business, and the School of Statistics and Planning.

Highlighting the purpose of Mak CoBAMS in line with the strategic meeting, Prof. Bbaale explained that the World Bank is a leader in applied research, policy design, and capacity building, and therefore, as partner, they would enrich the discussions aimed at hosting a successful and impact-driven African Meeting of the Econometric Society. In addition, the partnership would present an opportunity to shape policy dialogue and engage Africa’s next generation of economists.

He added that at the national level, the Bank of Uganda, National Planning Authority, and the Ministry of Finance, Planning and Economic Development had agreed to be partners.

Acknowledging that scholars, researchers and participants in general, would be delighted to engage with an authority in the discipline, Prof. Bbaale proposed a Policy Round Table moderated by the World Bank.

Building on Prof. Bbaale’s remarks, the Dean of the School of Economics, and a Member of the Global Organizing Committee, Associate Professor Ibrahim Mike Okumu, highlighted that partnership with the World Bank would strengthen the research-policy interface at scale.

At the strategic level, the Dean of the School of Economics, articulated that the partnership would establish a lasting platform to strengthen the role of economic research in development policy across Africa. He noted that some of topics, papers and research, would focus on African economics and development. He pointed out that the international engagement with participants from across the globe provides an opportunity to inform policy briefs on a wide range of topics

Contributing to the discussion, Associate Professor Eria Hisali, submitted that the Journal Publications under the World Bank would provide possible outlets for the dissemination of information and knowledge generated during the African Meeting of the Econometric Society.

Presentation by the delegation from the World Bank

The Regional Director for East Africa, Hassan Zaman, was pleased to visit Makerere University, an institution that has significantly contributed to knowledge creation and transfer as well as development.

Responding to the presentation from the College of Business and Management Sciences, Zaman welcomed the idea of potential collaboration. “Based on our knowledge bank perspective, it is of interest to engage.”

Specific to Africa, Zaman emphasized the need for topics on econometrics to be presented by experts from the continent. He welcomed the proposals on a Policy Round Table, Impact-driven Policy briefs, participating in the summer school, and representation of the World Bank on the Global Organising Committee.

Presentation on the Public Investment Management (PIM) Centre of Excellence

During the Strategic Partnership Meeting, the delegation expressed interest in collaborating with the Public Investment Management (PIM) Centre of Excellence based at Makerere University.  “The World Bank will undertake a public investment review. Does the PIM Centre at Makerere University undertake analytical work?”

In response, the College team expressed readiness for collaboration with the World Bank. Consequently, the Principal of CoBAMS and his team, briefed the delegation on the PIM Centre of Excellence:

  • Its main focus is capacity building through training of government officials along the entire project cycle.
  • PIM Centre kicked off with seed funding from the World Bank. When the grant came to an end, Bank of Uganda came onboard to support.
  • The Centre undertakes capacity building, research, and policy engagements.
  • Every year in the month of August, Makerere University, College of Business and Management Sciences, in partnership with the Ministry of Finance, Planning and Economic Development (MoFPED), and the National Planning Authority (NPA), hold a PIM Conference.
  • Associate Professor Ibrahim Mike Okumu and Associate Professor Eria Hisali shared some of the ongoing research in the area of public investment management.

The Strategic Meeting concluded on a high note, with both parties not only acknowledging but receptive of the various prospects future collaboration and partnership presents.

Ritah Namisango
Ritah Namisango

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