From Gulu to Mbarara: How secondary cities can drive Uganda’s next phase of growth
The future of Uganda’s economy will not be decided in Kampala alone. It will increasingly be written in cities like Gulu and Mbarara. The sooner we invest in their competitiveness, the sooner Uganda can build an economy in which opportunity is shared across the nation
Judy Rugasira. (Courtesy)
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OPINION
By Judy Rugasira
Anyone who visited Mbarara 20 years ago and returns today will immediately notice the difference. The city has grown beyond its former role as a regional administrative centre into one of Uganda’s busiest commercial hubs. New hotels, shopping centres, factories, universities, hospitals and residential neighbourhoods have changed its landscape. Yet beneath that visible growth, lies a more important question, can Mbarara evolve from a sporadically growing city into a truly competitive investment destination?
No country achieves broad-based economic transformation by relying on a single city. Kampala will remain Uganda’s principal commercial centre, but it cannot carry the country’s growth ambitions alone. Congestion, rising land costs and pressure on infrastructure make the case for stronger regional cities increasingly urgent. If Uganda is to achieve balanced growth, regional cities must become centres of investment, enterprise and innovation.
It is against this backdrop that the second Real Estate Development & Investment (REDi) Summit will be held in Mbarara on August 21. REDi is a national investment forum established to bring together government, investors, developers, financiers and development partners to identify practical solutions for unlocking investment in Uganda’s secondary cities. Its purpose is not simply to discuss opportunity, but to mobilise capital, strengthen public-private collaboration and convert regional potential into viable projects.
Mbarara city is a logical next step. It occupies a strategic position on an important regional trade corridor, serving south-western Uganda and connecting the country to Rwanda, eastern Democratic Republic of Congo and northern Tanzania. It also anchors one of Uganda’s most productive agricultural regions.
Several institutions there already show how urban growth can create wider economic ecosystems.
Mbarara University of Science and Technology does more than educate students. It generates demand for student accommodation, rental housing, retail, transport, food services and professional employment. Similarly, Mbarara Regional Referral Hospital is not only a critical public health institution, it also supports demand for pharmacies, laboratories, hospitality, transport and health-care related real estate. They show how anchor institutions stimulate wider investment.
The same logic applies to agriculture. South western Uganda is a major producer of milk, coffee, matooke, tea and grains, yet too much value still leaves the region before processing. Every litre of milk or tonne of produce transported elsewhere for value addition represents jobs, income and investment that could have remained locally. Investment in agro-processing, cold-chain logistics, warehousing and export infrastructure could enable Mbarara to retain more value, deepen industrial activity and strengthen regional competitiveness.
REDi offers a rare opportunity for both sides to engage meaningfully around the same agenda, investment opportunities and constraints. The Mbarara programme has, therefore, been designed around the questions investors ask before committing capital. Is the city investment ready? Which sectors offer the strongest returns? What infrastructure is required? How can housing, healthcare, student accommodation and mixed-use development be financed? What must government do to reduce risk and what must the private sector do to convert opportunity into delivery?
Importantly, the conversation is intended to end with commitments rather than speeches.
Government, Mbarara city, financiers, developers and the hosts, Knight Frank Uganda, will be invited to make specific undertakings linked to actions and timelines. These will be captured in a Mbarara Investment Opportunities Communiqué, creating a basis for accountability after the event. Will one summit transform Mbarara? Clearly not. Competitive cities are built over many years through consistent policy, sustained investment and effective collaboration.
What a forum, such as REDi can do is accelerate momentum. It can replace assumptions with evidence, connect capital with opportunity and build the partnerships required to move projects from concept to implementation.
The future of Uganda’s economy will not be decided in Kampala alone. It will increasingly be written in cities like Gulu and Mbarara. The sooner we invest in their competitiveness, the sooner Uganda can build an economy in which opportunity is shared across the nation.
The writer is the managing director of Knight Frank Uganda