Business & Management
Local Governments Embrace Innovative Financing Framework for Infrastructure Development
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.
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.
- 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.
- 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.
- 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.
- 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.
- 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.
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.
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.
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
The Statistics and Data Science (SDS) Working Group training kicked off on Monday, 20th January 2025, and will run until 24th January 2025. This training, an initiative by the college, aims to build capacity in Artificial Intelligence (AI) and Machine Learning (ML) among its members.
Participants are being equipped with a wide range of skills, covering topics such as text mining, unsupervised learning, neural networks, Geographic Information Systems (GIS), and more. The training is facilitated by expert data scientists from the Uganda Revenue Authority (URA), Housing Finance Bank, and the School of Statistics and Planning (SSP).
The SDS Working Group comprises academic staff at the School of Statistics and Planning (SSP) whose research interests focus on statistical learning and AI.
On January 21, 2025, Mr. Kiyingi Simon Peter and Mr. Tusubira Brian from URA led an engaging session on the practical applications of machine learning algorithms in day-to-day activities. They demonstrated how components fed into ML models are used to classify taxpayers into high-risk and low-risk categories, showcasing the transformative potential of AI in optimizing operations.
Dr. Margaret Banga, the Dean of the School of Statistics and Planning (SSP), emphasized the transformative impact of the training on both the academic and professional development of the participants. She commended the expert trainers from the Uganda Revenue Authority (URA) and other partnering institutions for their practical and insightful contributions to the sessions. Dr. Banga noted that the training is a significant step toward enhancing the teaching methodologies and research capabilities of the faculty. “By equipping our staff with advanced skills in Artificial Intelligence and Machine Learning, we are empowering them to deliver cutting-edge knowledge to our students and conduct impactful research that addresses real-world challenges,” she remarked.
The training is a testament to the SSP’s forward-thinking approach to education and research in statistics and data science. The integration of topics such as neural networks, text mining, and Geographic Information Systems (GIS) underscores the need for multidisciplinary expertise in an increasingly data-driven world. Dr. Banga highlighted that this capacity-building effort aligns with the college’s strategic objectives of fostering innovation and staying ahead in the rapidly evolving fields of data science and statistical learning.
The Dean further stressed the importance of partnerships with organizations like the Uganda Revenue Authority and Housing Finance Bank, which provide invaluable industry perspectives. These collaborations ensure that academic training is not only theoretical but also applicable to practical challenges in sectors such as taxation, finance, and public administration.
In conclusion, Dr. Banga reaffirmed her commitment to continuous learning and development within the School of Statistics and Planning. She expressed confidence that the knowledge gained through the training would translate into improved academic delivery, enriched research output, and a stronger contribution to societal and economic transformation through the application of advanced data science methodologies.
On January 20, 2025, the Public Investment Management (PIM) Centre of Excellence at Makerere University commenced a three-day training program titled “Essentials of Public Investment Management.” The workshop, held at the College of Business and Management Sciences (CoBAMS), aims to enhance the capacity of public service officials in planning, executing, and evaluating public investment projects.
The training workshop was officially opened by Prof. Edward Bbaale, who, in his opening remarks, expressed gratitude to the Ministry of Finance, Planning, and Economic Development for their financial support and pivotal role in identifying and nominating participants for the program. He acknowledged the contributions of Permanent Secretaries, Vice Chancellors, and Executive Directors in ensuring representation from various Ministries, Departments, and Agencies (MDAs) of the Ugandan government.
Prof. Bbaale commended the collaborative efforts of Makerere University faculty, the Ministry of Finance, and the National Planning Authority in designing and delivering the training curriculum. He emphasized that the program reflects Makerere University’s commitment to fostering excellence in public investment management through capacity-building initiatives.
The training covers a comprehensive range of topics, including project preparation, the Integrated Bank of Projects (IBP), procurement processes, Public-Private Partnerships (PPPs), monitoring and evaluation, and the integration of climate change and social risk management in project planning. Participants will gain both theoretical knowledge and practical experience in preparing real-world projects across vital sectors such as health, education, roads, electricity, and water.
Prof. Bbaale also highlighted the importance of advancing participants’ expertise through future modules in financial and economic appraisal of projects. He encouraged participants to consider enrolling in advanced training programs offered in collaboration with Cambridge Resources International and Queen’s University, Canada. Successful completion of these advanced modules will lead to a tripartite certification from Makerere University, the Ministry of Finance, and Queen’s University.
In addition to training, the PIM Centre of Excellence engages in research, outreach, and advisory services. Prof. Bbaale outlined ongoing projects, such as revising Development Committee guidelines for the Ministry of Finance and assessing project performance since the first National Development Plan (NDP I). He noted the Centre’s recent milestone—the successful hosting of the Public Investment Management Conference in October 2024—which evaluated the state of public investments in Uganda and charted the way forward.
The program participants, drawn from various government institutions, were encouraged to leverage the training to drive positive change in their respective roles. “This marks the beginning of your journey to becoming experts in Public Investment Management. Your commitment will not only enhance public service efficiency but also contribute to Uganda’s economic transformation,” said Prof. Bbaale.
The workshop is coordinated by the PIM Centre of Excellence Secretariat under the leadership of Dr. Sseruyange. The Centre remains steadfast in its mission to build capacity, promote research, and foster innovation in public investment management. At the end of the training, participants will be awarded dual certificates from Makerere University and the Ministry of Finance, recognizing their dedication to professional development.
This initiative underscores Makerere University’s role as a key player in national capacity-building and economic development through education and innovation. For God and My Country.
Business & Management
School of Economics Hosts Team Building Event, Celebrates Excellence with Awards
On Wednesday, January 15, 2025, the School of Economics at Makerere University organized a vibrant team-building activity in the scenic surroundings of Buwatte. This initiative aimed to foster stronger bonds among staff members, celebrate outstanding achievements, and set a collaborative tone for the year ahead.
The day was filled with a variety of activities designed to promote teamwork and camaraderie. Staff members enthusiastically participated in interactive games, lively discussions, and fun challenges that brought out their competitive yet collaborative spirit. The games were followed by a hearty lunch, where everyone gathered to share stories, laughter, and a sense of community. The event culminated in a joyous moment of merry-making, which showcased the School’s vibrant culture of inclusivity and togetherness.
The occasion also served as a platform to honor outstanding individuals who had excelled in their roles over the past year. The award for the best journal paper was presented to the Dean, Prof. Ibrahim Mike Okumu, in recognition of his exemplary contribution to academic research and publication. Meanwhile, the coveted Teacher of the Year Award, as voted by students, was bestowed upon Mr. Fred Kasalirwe for the second consecutive year. This recognition underscored his dedication to delivering engaging and impactful learning experiences.
In his address, Prof. Okumu expressed heartfelt appreciation for his colleagues’ hard work and commitment, which he credited for the School’s numerous achievements in 2024. He extended special congratulations to the winners of the Vice Chancellor’s Excellence Awards, acknowledging their contribution to enhancing the university’s reputation for academic excellence.
Prof. Okumu emphasized the importance of sustaining the spirit of teamwork, which he described as a cornerstone for the School’s continued success. He encouraged his staff to embrace collaboration as they embark on new academic and administrative pursuits in 2025.
The team-building event was not only a celebration of the past year’s accomplishments but also a rallying call for a productive and united future. Staff members left the event reinvigorated and motivated to uphold the School’s vision of academic excellence and impactful scholarship. As the School of Economics enters the new year, this memorable day in Buwatte stands as a testament to the power of unity, shared purpose, and the collective commitment to shaping a brighter future for the institution.
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