Civil Engineer Proposes Structural Reforms to Boost Local Construction Capacity in Open Letter to President Museveni

KAMPALA, UGANDA – A prominent Ugandan civil engineer and entrepreneur has called on the government to implement sweeping structural reforms aimed at ending the dominance of foreign contractors in the country’s multibillion-dollar infrastructure sector.

In an open letter addressed to President Yoweri Kaguta Museveni, Joel Aita—CEO of Joadah Consult Ltd, Chairperson of Muni University Council, and author of An Entrepreneur’s Mind—argues that despite billions of dollars spent on roads, water systems, and energy projects, the majority of those funds leave Uganda because local firms are systematically excluded from major contracts.

“Uganda builds, but Ugandans do not benefit,” Aita writes. “As our national debt grows and the infrastructure gap widens, we cannot afford to continue financing the development of other nations while our own local construction industry remains weak, underfunded, and structurally excluded from the very projects meant to develop our country.”

Three-Pronged Reform Proposal

Drawing on over two decades of experience in the sector, Aita outlines three interconnected policy interventions that he says would ensure borrowed infrastructure funds build lasting local capacity.

Mandatory 30% Local Subcontracting (The Malawi Model)

Aita proposes that no foreign construction company be allowed to sign a main contract on a government-funded project unless it has first executed a formal subcontract agreement with a Ugandan‑owned firm covering a minimum of 30% of the contract value. The policy, already implemented in Malawi, would be codified into the Public Procurement and Disposal of Public Assets (PPDA) Act as a non‑waivable condition.

“Malawi has demonstrated that local content is not charity—it is industrial policy,” he states, adding that the threshold should be a floor, with incentives for bids that exceed it.

Structured National Programme for Capacity Building

The second proposal calls for a dedicated National Construction Industry Development Programme (NCIDP) under the Ministry of Works and Transport, in partnership with the Uganda Institution of Professional Engineers (UIPE) and the Engineers Registration Board (ERB). The programme would include:

· Technical skills training for site engineers, foremen, and quantity surveyors;
· A government‑operated equipment leasing scheme to provide heavy machinery at subsidised rates;
· Business management training focused on contract administration and financial systems;
· Formal technology transfer requirements for all foreign contractors; and
· A national contractor registry with a clear grading and development pathway.

Uganda Infrastructure and Construction Bank

The third and most ambitious proposal is the establishment of a specialised development finance institution—the Uganda Infrastructure and Construction Bank (UICB). Citing commercial lending rates of 20–26% that make project financing impossible for local contractors, Aita urges the government to capitalise a bank that would offer single‑digit interest rates, performance bond guarantees, and working capital facilities exclusively to Ugandan firms working on public projects.

“No construction firm working on projects with typical margins of 8% to 15% can profitably borrow at those rates,” he notes. “The UICB would fill the gap that commercial banks have neither the mandate nor the appetite to fill.”

The bank could be capitalised through government equity, a levy on large foreign contracts, and concessional co‑financing from development partners such as the African Development Bank and the International Finance Corporation.

A Call for Immediate Executive Action

Aita urges the President to direct immediate changes without waiting for new legislation, including:

· Amending standard bidding documents to include the mandatory 30% local subcontracting requirement for all contracts above UGX 10 billion;
· Instructing ministries to enforce the requirement on ongoing procurements;
· Commissioning a six‑month feasibility study for the infrastructure bank;
· Directing UIPE, ERB, and the Ministry of Works to deliver a National Contractor Development Programme framework within ninety days; and
· Engaging development partners to embed local content provisions in infrastructure financing agreements.

“Uganda is not short of talent,” Aita concludes. “What we lack is a system that believes in us enough to invest in us. The infrastructure being constructed today will define this nation for the next fifty years. The question is whether Uganda will build its own capacity in the process.”