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
Business & Management
PIM Centre Awards Certificates to Over 35 Officials Trained in Essentials of Public Investment Management
The Public Investment Management (PIM) Centre of Excellence at Makerere University has awarded certificates to more than 35 public officials who successfully completed a three-day training in the Essentials of Public Investment Management (PIM).
The training, held from September 23rd to 26th, 2025 at the College of Business and Management Sciences, aimed at strengthening the capacity of government officials to effectively identify, prepare, and implement public projects.
The closing ceremony was officiated by Ms. Belinda Bisamaza, who represented the Permanent Secretary/Secretary to the Treasury (PS/ST). In her remarks, Ms. Bisamaza commended participants for their commitment, noting that the training had offered a solid foundation in the entire PIM cycle — from project conceptualization and profiling, through monitoring and evaluation (M&E), to the use of the Integrated Bank of Projects (IBP), Environmental and Social Risk Management, and Public-Private Partnerships (PPPs).
“With these skills, you can contribute meaningfully to improving the quality of proposals submitted to the IBP, ensure better risk management, and enhance implementation through robust monitoring frameworks,” she said, adding that participants were now better prepared for advanced modules on financial appraisal, risk analysis, and stakeholder engagement.
Representing the PIM Centre, Prof. Eria Hisali highlighted the need for well-prepared projects that directly contribute to economic growth. “We must move away from the practice of developing projects only when funding is required. Instead, we should create a strong bank of quality projects from which government can easily draw,” he said.
The Manager of the PIM Centre, Dr. John Sseruyange, expressed gratitude to the participants and trainers for their dedication. He noted that the facilitators were drawn from Makerere University, the National Planning Authority (NPA), and the Ministry of Finance, Planning and Economic Development (MoFPED). Dr. Sseruyange also revealed that the Centre would be rolling out further in-depth training modules and creating opportunities for alumni to engage in consultancy and research work. The PIM Centre hosts the training as part of broader efforts by Makerere University, MoFPED, and NPA to strengthen Uganda’s public investment management systems, ensuring value for money, improved service delivery, and sustainable economic development.
Business & Management
PIM Centre Makerere, Graduates Second Cohort of Certificate in Financial Implications – Integrated Regulatory Cost-Benefit Analysis
Jinja, September 5, 2025
Thirty-one government officers from Ministries, Departments, and Agencies (MDAs) have successfully completed a two-week intensive training in the Certificate of Financial Implications (CFI) – Integrated Regulatory Cost-Benefit Analysis. The certification ceremony was held at the Pearl on the Nile Hotel, Jinja, marking another milestone in Uganda’s efforts to institutionalize evidence-based and fiscally responsible policymaking.
The training, delivered by the Makerere University Public Investment Management (PIM) Centre of Excellence in partnership with the Ministry of Finance, Planning and Economic Development (MoFPED), and National Planning Authority equipped participants with practical skills to evaluate policy and legislative proposals for their financial, economic, and social implications.
Speaking at the closing ceremony, Mr. Paul Mwanja, Commissioner for Infrastructure & Social Services at MoFPED, who represented the Permanent Secretary, commended the officers for their commitment at a time when government institutions are finalizing the Auditor General’s audits, implementing the FY2025/26 budget, rolling out the National Development Plan IV’s tenfold growth strategy, and preparing for the 2026 General Elections.
“Your participation affirms a collective commitment across Government to strengthen the quality, transparency, and credibility of public policymaking in Uganda,” Mr. Mwanja said. He urged graduates to return to their institutions as champions of reform, share their knowledge with colleagues, and drive the change needed in Public Finance Management. He also announced that the next cohort of the training will take place in January 2026.
Prof. Ibrahim Mike Okumu, Dean of the School of Economics at Makerere University, delivered the graduation address, highlighting the certificate’s importance in addressing Uganda’s triple challenge of scale, scarcity, and speed.
“This program does something unique. It teaches you not only to ask whether a policy or project is beneficial, but also whether it is affordable and resilient under real fiscal constraints,” Prof. Okumu noted. He challenged graduates to apply their skills at project, portfolio, and policy levels—ensuring value for money and enhancing public trust in government spending.
He further emphasized that Uganda’s pioneering approach to integrated CFI-CBA positions the country as a leader in Africa and beyond: “You, Uganda’s first CFI-CBA graduates, are now part of a global brain trust. Your work will speak to investors, parliaments, development partners, and above all, the Ugandan people.”
Dr. John Sseruyange, Manager of the PIM Centre of Excellence, expressed appreciation to participants for their active engagement throughout the training and thanked MoFPED and the faculty drawn from Makerere University, the National Planning Authority, Ministry of Finance, and the Ministry of Energy for their technical support.
The Certificate of Financial Implications – Integrated Regulatory Cost-Benefit Analysis was introduced following the Revised Guidelines for Financial Clearance, effective July 1, 2025. The guidelines require MDAs to prepare their own financial implications statements, subject to rigorous cost-benefit analysis, thereby strengthening linkages between fiscal responsibility and regulatory impact assessments.
With the successful completion of the second cohort, Uganda is steadily building a critical mass of professionals capable of embedding cost-benefit thinking across government, ensuring every shilling delivers maximum impact for citizens.
The Public Investment Management Centre of Excellence (PIM CoE) at Makerere University held its Steering Committee meeting on 4th September 2025 at Mestil Hotel in Kampala. The session, attended by all members, focused on reviewing progress, reflecting on achievements from the past financial year, and charting the way forward for the Centre.
About the PIM Centre of Excellence
The PIM CoE was established in March 2022 at Makerere University’s College of Business and Management Sciences (CoBAMS), in partnership with the Ministry of Finance, Planning and Economic Development (MoFPED). Its purpose is to strengthen Uganda’s public investment management system through training, research, and advisory services.
The Steering Committee plays a critical role in oversight, review, coordination, and advisory functions, guiding the Centre’s work and ensuring that public investment processes align with national development priorities.
Highlights from the Meeting
Speaking at the meeting, Dr. Joseph Muvawala, the Executive Director of the National Planning Authority, praised the October 2024 Annual PIM Conference for expanding perspectives on project design and delivery. He emphasized the importance of shifting from theory to practice in training, advocating for students and officials to engage with real-world projects. He also underscored the Centre’s new autonomy—transitioning from a subvention to a vote—which gives it greater independence but also demands stronger financial accountability. Dr. Muvawala further called for a permanent physical home for the Centre, noting that sufficient resources are available to make this possible and that negotiations with government are underway.
Mr. Ashaba Hannington, Director Budget at MoFPED, shared key achievements from the 2024/25 financial year. He noted that the Annual PIM Conference, organised jointly by MoFPED and the Centre, provided a vital platform for stakeholders to reflect on progress in public investment management.
Mr. Ashaba reaffirmed MoFPED’s commitment to working closely with the Centre to strengthen Uganda’s public investment capacity.
Prof. Eria Hisali, Co–Principal Investigator of the PIM CoE, outlined strategies to increase the Centre’s vibrancy and impact. He emphasized direct project engagement, advisory services, and peer reviews as ways to bridge the gap between theory and practice. Looking ahead, he revealed plans for a Master’s program in Economic and Investment Modelling, a Training of Trainers (ToT) initiative, and deeper practical capacity-building efforts.
Prof. Hisali also noted several successful trainings from the past year, including:
- 46 staff from MDAs trained in Essentials of PIM.
- 59 participants across two cohorts trained in Financial Appraisal and Risk Analysis.
- 25 participants trained in Economic Appraisal and Stakeholder Analysis.
He proposed the introduction of a “trailer feasibility test” to evaluate whether completed projects deliver benefits as projected and to address optimism bias in project planning.
Dr. John Seruyange, Manager of the PIM CoE, highlighted the Centre’s growing regional footprint. Beyond Uganda, six central government officers from Somalia have been trained in Infrastructure Asset Management, generating further interest in advanced training from Somalia, Zimbabwe, and Somaliland. To position itself as a regional hub, the Centre is preparing a prospectus to market its courses across Africa and beyond.
Why It Matters
The Steering Committee reaffirmed its commitment to ensuring that the PIM CoE remains a leading think tank and capacity-building hub for government and regional partners. By improving the appraisal, financing, and implementation of public projects, the Centre is strengthening accountability, enhancing service delivery, and contributing to Uganda’s broader development goals.
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