The World Bank agreed a new six-year $540 million finance package to support Uganda’s urban development.
The funding aims to enhance all-weather roads, stormwater drainage, street lighting, and public markets to improve transport connections, reduce flooding, and boost public safety, while also stimulating the local economy. The package targets 10 cities and is projected to create around 40,000 jobs.
Around 27% of the country’s population has already moved into urban areas, according to the 2024 census, a figure expected to double in the next two decades, but infrastructure has failed to keep pace.
“Rapid urbanisation has fuelled slum growth,” according to the government-produced 2025 State of Uganda Population Report, resulting in around 60% of urban dwellers living in informal settlements, which often lack proper sanitation, access to social services, and face regular flooding.