'Local contractors need affordable capital to compete with international firms'
Buregyeya says every Ugandan taxpayer contributes to the roads we drive on, the schools our children attend, the hospitals we rely on and the public buildings that serve our communities.
Eng. Dr. Apollo Buregyeya
For years, Ugandan contractors have argued that access to affordable financing is the biggest obstacle preventing them from competing with large foreign firms for major infrastructure projects.
However, while acknowledging that affordable capital remains essential, Eng. Dr. Apollo Buregyeya, a lecturer at Makerere University’s Department of Civil and Environmental Engineering, believes the conversation has become too narrow.
He argues that financing is only one piece of a much larger puzzle and outlines four critical pillars that, if pursued together, could transform Uganda’s local construction industry into a globally competitive sector. New Vision’s Nelson Mandela Muhoozi writes.
Qn: Why do you believe the country needs to rethink how it measures the success of infrastructure investment?
Ans: Every Ugandan taxpayer contributes to the roads we drive on, the schools our children attend, the hospitals we rely on and the public buildings that serve our communities. Infrastructure should, therefore, be assessed not only by the physical assets it leaves behind, but also by the economic capacity it creates for Ugandan companies during construction. Today, Uganda mobilises public resources to finance national development. Yet, a significant portion of the value generated during construction often flows through foreign contractors, imported technologies, external supply chains and offshore financing. The infrastructure remains in Uganda, but many of the opportunities created during its construction do not.
Qn: Does this mean Uganda should reduce the participation of foreign contractors?
Ans: Not at all. Every economy benefits from international participation because it brings competition, innovation and higher standards. The issue is not whether foreign firms should participate but whether Uganda is intentionally using its infrastructure investments to build strong local companies capable of undertaking increasingly larger portions of the country’s own development.
Qn: Local contractors have consistently called for affordable financing. Is that still a priority?
Ans: Absolutely. Construction is one of the most capital-intensive industries. Contractors mobilise equipment, purchase materials, recruit workers and begin executing projects long before they receive full payment. When payments for completed government projects are delayed, contractors’ working capital becomes tied up, loan obligations continue accumulating and financing costs rise significantly. Local firms borrowing at expensive commercial interest rates cannot fairly compete with foreign companies that often access cheaper financing. Affordable capital, therefore, remains necessary.
Ans: Because financing by itself does not create sustainable companies. If a contractor lacks proper financial systems, governance structures and sound cash-flow management, additional borrowing can actually increase the risk instead of improving competitiveness. Credit should be viewed as fuel that powers growth, not the engine that drives it.
Qn: What framework do you propose for strengthening Uganda's local contractors?
Ans: Uganda’s construction industry needs to develop four inter-connected pillars simultaneously: Market Access, Affordable Capital, Management Formalisation and Industrial Capability. These are practical foundations for building competitive firms rather than simply responding to short-term challenges.
Qn: Why is market access the first pillar?
Ans: Contractors cannot build capacity without work. Companies improve by executing projects, learning from experience and gradually taking on more complex assignments.
Procurement systems should, therefore, create genuine opportunities that allow capable Ugandan contractors to progress from smaller contracts to larger national infrastructure projects. Without consistent opportunities, firms cannot accumulate experience or confidence.
Qn: Where does affordable capital fit within this framework?
Ans: Affordable capital is the second pillar because contractors require patient financing to mobilise equipment, purchase materials, retain skilled employees and survive the long cash-flow cycles typical of construction. However, finance only works effectively when supported by strong management systems.
Qn: You describe management formalisation as perhaps the most neglected pillar. What do you mean?
Qn: What role should industry associations such as the Local Contractors' Forum play?
Ans: Industry associations should evolve beyond advocating for contractors only during periods of crisis. Instead, they should actively help members build systems that prevent those crises from occurring. For example, developing a practical Governance Starter Kit containing financial templates, quality management procedures, contract administration tools, safety manuals and governance guidelines would help many firms formalise their operations without each contractor having to start from scratch. That is what I would call institutional parenting.
Qn: What is the importance of industrial capability, the fourth pillar?
Ans: Every completed project should leave a contractor stronger than before. Companies should emerge with improved technical skills, stronger equipment fleets, better management systems, more reliable supplier networks and increased productivity. If projects only generate short-term income without strengthening the contractor’s long-term capacity, the industry remains trapped in transactional business instead of evolving into a competitive industrial sector.
Qn: How do these four pillars work together?
Ans: They reinforce one another. Market access creates opportunities. Affordable capital enables mobilisation. Management formalisation creates discipline and control. Industrial capability builds long-term competitiveness. None of these pillars is sufficient on its own. Sustainable growth comes from strengthening all four together.
Qn: What should Uganda’s next phase of infrastructure development focus on?
Ans: Uganda has invested heavily in infrastructure, and that investment should now be measured not only by the kilometres of roads constructed or buildings commissioned but also by the strength of the Ugandan companies created along the way. Infrastructure should not simply build physical assets; it should also build institutions, businesses and national capacity. That is how infrastructure spending delivers lasting economic transformation.