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Why Uganda cannot build tomorrow's economy using yesterday's construction methods

As Uganda continues to pursue industrialisation, agro-processing and urban development, the construction must evolve along with the rest of the economy.

Marion Mabwa. (Courtesy)
By: Admin ., Journalist @New Vision

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OPINION

By Marion Mabwa


Promotion of entrepreneurship, innovation and increased productivity are among key areas that the Government is focusing on to unlock Uganda’s economy in the Tenfold Growth Strategy aimed at expanding the gross domestic product from $50b to $500b by 2040.

However, the often untold story is how time delays in the establishment of facilities such as warehouses and factory structures, among others, drastically affect productivity through triggering expensive ripple effects, wasted labour hours, operational costs and severe manufacturing downtime.

Imagine a coffee entrepreneur in Greater Masaka or Bugisu or Ankole securing financing on time to build a processing facility where other factors, such as market, labour and materials, are in place, yet, after one or two years, all the machinery remains idle because of delays in construction.

In that case, workers are not hired, and production has not started simply because the facility is not operating. In practical economics, the opportunity cost of the lost time in the recurring delays can severely eat into the facility’s maximum output, and this leads to delayed business growth, postponed jobs and others.

As Uganda continues to pursue industrialisation, agro-processing and urban development, the construction must evolve along with the rest of the economy. Construction is more than bricks and cement; it is the foundation upon which economic transformation is built, playing a major role in development and contributing about 8% of Uganda’s GDP while supporting thousands of jobs directly and indirectly.

Every industrial park, factory, warehouse, school, hospital and housing estate starts with construction. When projects take longer than necessary, the costs ripple through the economy.

Uganda’s population is projected to continue growing rapidly, with statistics from the Uganda Bureau of Statistics indicating that the population is expected to reach 48.2 million this year, driven by an annual growth rate of 3%, with urban centres expanding every year.

At the same time, the Government and private investors are investing in logistics facilities, agro-processing centres and oil-related infrastructure, and for decades, Uganda's construction has largely depended on traditional methods. However, the world is changing, and new technologies and modern building systems are helping in delivering projects faster and more efficiently.

One of the most significant developments has been the rise of pre-engineered building solutions (PEBs). In Uganda, PEBs such as prefabricated steel factory sheds, warehouses and agro processing plants are rapidly revolutionising the landscape.

These solutions involve designing and manufacturing key components offsite before they are transported to the site as kits. The result is faster construction, improved quality control and reduced material waste; a pre-engineered structure takes up to 12 weeks to completion, but a conventional building takes about six months to a year or two.

Now, businesses and entrepreneurs have to focus less on long waiting times for project completion and more on creating value.

This is about embracing approaches that improve productivity. Opportunities presented by oil and gas, manufacturing and rapid urbanisation are immense, but unlocking them will require infrastructure that can be delivered with efficiency and quality as a competitive advantage.

The writer is the head of Safal Building Solutions, Uganda Baati Limited.

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Uganda
Economy