Construction and Public Procurement in Uganda

Abstract

As it transitions to an oil-producing country, Uganda’s investments in infrastructure and physical capital will increasingly depend on the ability of the construction sector to respond to surges in demand and transform investment effort into outcomes. Using administrative and survey data, this chapter sets out to examine the current bottlenecks to production faced by the construction sector in Uganda and identifies possible policy remedies to relieve them. A secondary point of emphasis in the chapter’s analysis is the interaction between government and construction firms through public procurement, and the instrumental role procurement plays in the efficient development of the industry. These new opportunities and challenges raise several questions. How much of the increased economic activity will be passed to the domestic private sector? Will these opportunities motivate efficiency and transparency? Would corruption and inefficiency in public procurement still play a major role as a barrier to industry development?