Minister Lugoloobi Urges Support for Land Reforms and Kampala’s Transformation in NDP IV Presentation

Summary:

• Minister of State for Planning, Amos Lugoloobi, urged Parliament to support proposed land reforms to facilitate land acquisition for public projects and address financial strain caused by idle loans tied up in legal disputes. He highlighted the importance of these reforms for the success of the Fourth National Development Plan (NDP IV) and Uganda’s infrastructure projects, such as the East African Crude Oil Pipeline.

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The Minister of State for Planning, Amos Lugoloobi, has called on Members of Parliament (MPs) to back the government’s proposed land reforms aimed at facilitating the acquisition of land for public projects. Lugoloobi emphasized that Uganda is facing significant financial pressure due to interest payments on idle loans tied up in lengthy court battles over land compensation.

Appearing before Parliament’s Budget Committee on January 6, 2025, during the presentation of the Fourth National Development Plan (NDP IV)—which will guide Uganda’s development from 2025 to 2030—Lugoloobi stressed the urgency of these reforms.

“We need land reforms to streamline the acquisition of land for public projects. This has become a major issue. We have borrowed substantial concessional loans, but they remain unutilized because of ongoing legal disputes over land acquisition and compensation. This is a serious problem; while we try to follow constitutional procedures to acquire land, we are often caught up in protracted legal battles,” Lugoloobi explained.

The debate on land reforms is not new. In 2017, the government proposed amending Article 26 of the Constitution to allow the state to take land for public projects, with disputed compensation being deposited in court while projects move forward. The proposal faced strong public opposition, with fears it could encourage land grabbing and corruption among officials. Critics also noted that in some instances, land acquired for development was later transferred to private hands.

Reigniting the debate, Minister Lugoloobi highlighted the critical role these reforms play in the success of NDP IV, pointing to the difficulties Uganda faced in acquiring land for the East African Crude Oil Pipeline (EACOP), in contrast to Tanzania’s smoother process.

“Delays in road construction are often caused by challenges in securing the right of way, which not only slows project implementation but also leads to significant costs in loan commitment fees. While Tanzania had no such challenges with the EACOP, Uganda faced considerable obstacles. These reforms are essential to securing Parliament’s support for future infrastructure projects,” Lugoloobi stated.

Alongside land reforms, the government has outlined plans to transform Kampala into a modern city aimed at reducing congestion, pollution, and petty crime, while positioning the city as Uganda’s logistical hub.

“The Kampala Metropolitan Area will be developed into Uganda’s logistical center to enhance productivity across sectors such as Foreign Direct Investment (FDI), tourism, and public service efficiency, which will lead to a better quality of life,” said Lugoloobi.

He criticized the current state of Kampala, describing it as congested, polluted, and plagued by petty crime, factors which he said harm Uganda’s global image and economic prospects.

While specific strategies for this transformation were not detailed, Lugoloobi’s comments followed the Ministry of Finance’s December 2024 loan requests for infrastructure projects in Kampala. These included an additional $518 million (UGX 1.87 trillion) in loans and a $48 million (UGX 173.6 billion) grant from the World Bank, as well as a €40 million (UGX 151.4 billion) loan from Agence Française de Développement (AFD) for road construction.

Another proposal included borrowing €45 million (UGX 170.4 billion) from AFD for improvements in water and sanitation services in Kampala.

According to the National Planning Authority (NPA), the main objective of NDP IV is to increase household incomes, fully monetize the economy, and create jobs to drive socio-economic transformation. Key focus areas include agriculture, industry, minerals, oil and gas, tourism, ICT, and financial services.

The Authority also noted progress in poverty reduction, with the poverty rate dropping from 24.5% in 2010/11 to 20.3% in 2019/20. Similarly, the subsistence economy shrank from 69% in 2010/11 to 39% in 2022/23. However, Lugoloobi emphasized that further economic integration is essential, as 33.1% of the population—around 3.5 million people—remain outside the monetary economy, limiting their income generation and access to vital services.

Additionally, the Minister reported significant growth in Uganda’s electricity capacity, with installed generation rising from 595 MW in 2010/11 to 2,047 MW in 2023/24. Access to electricity also grew from 24% in 2017/18 to 58% in 2023/24, demonstrating progress in expanding energy access.