Uganda’s Vision 2040 aims to transform the economy through industrialization. The Greater Kampala Metropolitan Area (GKMA) is well positioned to be the engine to drive this positive structural transformation.
The capital city region is the main urban area in Uganda capable of delivering scale economies in terms of concentrated demand, specialization, diversity and depth of skills and innovation.
Greater Kampala is currently following a broad economic development strategy set out in both the Kampala Capital City Authority (KCCA) strategy and the GKMA Development Framework.
Under the economic growth theme, KCCA is seeking to develop a more specific city economic development strategy that will provide a framework for sustained economic growth driven by an efficient infrastructure network.
Also, the Government of Uganda, recognizing the need for a coordinated effort toward economic growth in the Greater Kampala Metropolitan Area (GKMA), has tasked the Ministry of Lands, Housing and Urban Development, and Office of the Prime Minister, KCCA and relevant Local Governments to develop an integrated framework for the development of GKMA.
To assist KCCA’s and other GKMA stakeholder’s efforts, this report aims to do three things.
Firstly, it seeks to profile Greater Kampala’s economy, emphasizing its importance to Uganda’s development and goals outlined in Vision 2040.
Secondly, the report identifies the key constraints and opportunities to growth and competitiveness for Kampala’s firms.
Finally, the report provides policy makers with practical actions to unlock the city’s economic potential.
These recommendations focus specifically on what local governments can do but also addresses complementary national-level actions.
Five years since its inception, KCCA has made significant progress in generating increased revenues and moving closer toward financial independence. Since 2011 to the 2015/16 financial year KCCA has been able to increase its internal revenue collection by 250%. A great deal of this growth has been through reforms in the efficiency of taxation collection. The primary growth in revenue has come from property rates, licenses and parking fees.
To achieve more strategic development, there’s need for coordinated investments amongst the stakeholders.