• World Bank approved $540 million to fund Uganda’s urban infrastructure program (UCMID II).

• The initiative targets 10 cities, 26 municipalities, and 13 refugee-hosting districts, benefiting 5.6 million people.

• Authorities expect the program to create at least 40,000 jobs, including 20,000 permanent roles.

World Bank has approved $540 million in financing to support the second phase of the Uganda Cities and Municipalities Infrastructure Development (UCMID) program, according to the government of Uganda.

Judith Nabakooba, Minister of Lands, Housing and Urban Development, announced the funding. She said the package includes $80 million in grants, while authorities will structure the remaining amount as a loan.

I bring more good news. Gov't of Uganda has secured more funding from the World Bank (about 2 trillion UGx) for further scalling up of urban centers and new cities. @Usmid_AF Better roads, lighting, waste management, etc. Thank you @KagutaMuseveni @NRMOnline pic.twitter.com/SaisZJxftc

— Judith Nabakooba (@JudithNabakoob1) April 8, 2026

The government will implement the program over six years, covering fiscal periods from 2026/2027 to 2030/2031, according to a ministry statement. Authorities will focus the program on five priority areas: urban roads and mobility, drainage and flood management, green infrastructure and climate resilience, solid waste management, and local economic development with job creation.

The program will cover 10 regional cities, 26 municipalities, and 13 refugee-hosting districts. It will directly benefit about 5.6 million people, including 600,000 refugees. Authorities expect to launch operations after finalizing agreements and implementation procedures.

Urban pressure and structural challenges

Minister Nabakooba said the initiative aims to reduce demographic pressure on Kampala by promoting economic opportunities in secondary cities. She said: “The UCMID will generate immediate jobs during construction phases and will also create sustainable jobs in urban services and operations.”

Authorities expect the program to create at least 40,000 direct jobs. These jobs will include 20,000 permanent positions in services and urban operations, as well as a similar number of temporary jobs linked to infrastructure works.

However, Uganda faces significant urban pressure. Rapid growth in Kampala and other cities has driven the expansion of informal settlements and strained existing infrastructure. According to the 2024 census, the country’s population reached 45.9 million, with an average annual growth rate of 2.9%.

At the same time, climate risks continue to weigh on urban systems, particularly flooding caused by inadequate drainage infrastructure. In addition, rising living costs are increasing pressure on households.

Data from the Uganda Bureau of Statistics show that prices for housing, water, electricity, gas, and other fuels rose by 3.9% between February 2025 and February 2026. Transport costs increased by 1.5% over the same period.

Uganda remains one of Africa’s largest refugee-hosting countries. According to the United Nations High Commissioner for Refugees, the country hosted more than 1.8 million refugees at the end of 2024, mainly from South Sudan, the Democratic Republic of Congo, Burundi, and Somalia.

Building on previous infrastructure gains

The UCMID program follows the Uganda Support to Municipal Infrastructure Development (USMID) program, which ended in 2024. Authorities reported that USMID delivered significant infrastructure improvements across multiple cities.

Minister Nabakooba said the program enabled the paving of more than 208 kilometers of urban roads. It also supported the construction of 6,312 kilometers of sidewalks, 6,342 kilometers of bicycle lanes, and 127 kilometers of parking areas nationwide.

Uganda launches UCMID (Uganda Cities and Municipalities Infrastructure Dev't program) to drive urban growth, jobs, and expansion beyond Kampala.#UBCNews | https://t.co/lshZniNkNN pic.twitter.com/uY7gnAV7Bq

— UBC UGANDA (@ubctvuganda) April 8, 2026

This article was initially published in French by Charlène N’dimon

Adapted in English by Ange J.A de Berry Quenum