Infrastructure services such as transport, housing, water and sanitation, communications and
energy are crucial inputs for socio-economic development of a country. They constitute the
threshold for sustained growth in all sectors, and provide most of the necessary amenities for
supporting higher living standards. Presently, only a small proportion of the population, mostly in
urban areas, enjoys an adequate level of infrastructure services. To the majority in rural areas,
services are either inaccessible or unavailable.
However, Uganda has been a major attraction of bilateral and multilateral donor funding. Because
of this, a good portion of the infrastructure has been rehabilitated. The government has managed
to rehabilitate most of the roads, airfields, and has gazetted industrial sites such as Namanve.
Basic infrastructure like trunk and rural feeder roads, water and sanitation services, and the
communications network have generally been provided.
The government of Uganda, since 1997 has been carrying out an ambitious reform programme of
public enterprises. Economic growth was sustained through increased private investment and
more efficient resource allocation, stimulated by liberalization of the economy. Uganda has been
lowering tariff and non-tariff barriers to regional trade, removed all restrictions on international
capital transactions, and about two thirds of Uganda’s public enterprises were privatized in the
In the telecommunications sector, two aspects of reform were used; privatization and
competition. In August 1997, Parliament passed the Uganda Communications Act, which
provided the legal framework for introduction of competition in the telecommunications sector
and Uganda Telecom Limited (UTL) is now privatized. In addition, reforms in the power sector,
aviation services, railways, water and other public enterprises are ongoing.
The government policy in the Infrastructure Sector aims at promoting cheaper, efficient and
reliable transport and communications services. To achieve these objectives, the government is
encouraging private sector participation through privatization and direct private investment.