The Minister of State for Planning, Amos Lugoloobi, has urged Members of Parliament (MPs) to support the government’s proposed land reforms aimed at enabling the acquisition of land for public projects. Lugoloobi emphasized that Uganda is facing significant financial strain from interest payments on idle loans due to prolonged court battles over land compensation.
While appearing before Parliament’s Budget Committee on Monday January 6, 2025 during the presentation of the Fourth National Development Plan (NDP IV), which will guide Uganda’s development between 2025 and 2030, Lugoloobi stressed the urgency of these reforms.
“We need land reforms for the acquisition of the right of way in the public interest. This has become a major challenge. We have borrowed substantial concessional loans, yet they remain idle due to ongoing court battles over land acquisition and compensation. It’s a serious problem; we attempt to acquire land following constitutional guidelines, only to face lengthy legal disputes,” said Lugoloobi.
The debate around land reforms is not new. In 2017, the government proposed amending Article 26 of the Constitution to allow the state to take over land for public projects and deposit disputed compensation in court while projects proceed. The proposal faced strong public opposition, with concerns it could fuel land grabbing and corruption among officials. Some critics also pointed out that land acquired for development had, in some cases, ended up in private hands.
Reviving the debate, Minister Lugoloobi underscored the importance of the reforms for the success of NDP IV, citing Uganda’s challenges in securing land for the East African Crude Oil Pipeline (EACOP) compared to Tanzania’s smoother process.
“In road construction, considerable delays arise due to difficulties in securing the right of way. This not only slows project implementation but also results in huge commitment fees on loans. For the EACOP, while Tanzania faced no such challenges, Uganda experienced significant hurdles. These reforms aim to ensure Parliament’s support for future infrastructure projects,” Lugoloobi noted.
In addition to land reforms, the government has announced plans to transform Kampala into a modern city, aiming to reduce congestion, pollution, and petty crime while positioning it as Uganda’s logistical hub.
“The Kampala Metropolitan Area will be developed as Uganda’s logistical hub to drive productivity across sectors, including Foreign Direct Investment (FDI), tourism, and efficient public services, resulting in a higher quality of life,” said Lugoloobi.
He criticized the current state of Kampala, describing it as congested, polluted, and prone to petty crimes, which affect Uganda’s global image and economic potential.
Although specific strategies for achieving this vision were not disclosed, the remarks follow the Ministry of Finance’s December 2024 loan requests for infrastructure projects in Kampala. These included an addendum to borrow $518 million (UGX 1.87 trillion) and receive a $48 million (UGX 173.6 billion) grant from the World Bank, alongside a €40 million (UGX 151.4 billion) loan from Agence Française de Développement (AFD) for road construction.
Another proposal involved borrowing €45 million (UGX 170.4 billion) from AFD for water and sanitation improvements in Kampala.
According to the National Planning Authority (NPA), the primary goal of NDP IV is to achieve higher household incomes, full economic monetization, and job creation to drive socio-economic transformation. Key focus areas include agriculture, industry, minerals, oil and gas, tourism, Information and Communication Technology (ICT), and financial services.
The Authority highlighted progress in poverty reduction, noting a drop from 24.5% in 2010/11 to 20.3% in 2019/20. Similarly, the subsistence economy shrank from 69% in 2010/11 to 39% in 2022/23. However, Lugoloobi emphasized the need for further economic integration, citing that 33.1% of the population—about 3.5 million people—remain outside the money economy, limiting income generation and access to essential services.
The Minister also reported growth in Uganda’s electricity capacity, with installed generation increasing from 595 MW in 2010/11 to 2,047 MW in 2023/24. Access to electricity rose from 24% in 2017/18 to 58% in 2023/24, reflecting progress in expanding energy access.
By Parliament Watch