Construction

Construction Industry in Uganda

The construction industry in Uganda is one of the fastest-growing sectors, playing a pivotal role in driving economic development, job creation, and urban transformation. With sustained GDP growth, population expansion, and rapid urbanization, the demand for housing, commercial buildings, roads, energy facilities, and social infrastructure continues to rise. The sector contributes approximately 7–8% of GDP and is projected to expand further as the country pursues its industrialization and infrastructure agenda.

Public infrastructure investment is the backbone of the industry. The government has prioritized roads, bridges, energy plants, oil infrastructure, and public facilities under its National Development Plan. Major projects include the expansion of Entebbe International Airport, construction of expressways such as the Kampala–Entebbe Expressway, and preparations for oil and gas infrastructure like the East African Crude Oil Pipeline (EACOP). These projects not only improve connectivity but also create a foundation for regional trade and investment.

Residential and commercial real estate are also booming. Uganda’s growing middle class and youthful population are fueling demand for affordable housing, modern apartments, shopping malls, and office spaces. Real estate developers, both local and foreign, are tapping into this market, with Kampala serving as the hub for high-end developments. Meanwhile, affordable housing remains a critical need, presenting opportunities for public-private partnerships and innovative financing models.

The private sector is a key driver, with both domestic firms and international contractors engaged in large-scale projects. Chinese, Turkish, and other foreign construction companies dominate mega-infrastructure works, while local firms are increasingly active in building, materials supply, and subcontracting. The government is also promoting the use of local content to ensure skills transfer and capacity building within Uganda’s workforce.

Challenges remain, including high costs of construction materials, limited access to long-term financing, land acquisition hurdles, and bureaucratic delays in approvals. Nonetheless, the sector is innovating through new technologies, prefabricated building materials, and green construction practices that enhance sustainability and reduce costs.

Looking ahead, the construction industry is expected to expand steadily, fueled by oil production, industrial park development, and urban growth. With strategic investments, policy support, and growing investor interest, Uganda’s construction sector is set to remain a cornerstone of national development and an attractive field for long-term investment.

Guiding growth in construction’s evolution

As the construction industry continues to evolve, businesses require advisors who understand the nuances of the sector ⁠–⁠ whether involved in civil, commercial or residential projects.

Our experts have the experience and insight to help you address market-specific challenges, as well as to identify and take advantage of growth opportunities. Our tailored guidance is designed to meet your unique needs through a diverse range of services.

Enhanced revenue recognition and corporate structure

Appreciating how important revenue recognition is for our construction clients, we employ a variety of methods to outline revenue-earning conditions for your company, including revenue related to construction contracts. In collaboration with you, we work to ensure that your annual financial statements meet the new revenue recognition reporting disclosure guidelines. 

We also advise on which corporate structure would best suit your unique needs and be easy to implement. Our experts will work with your finance team to map out the financial reporting framework associated with the new structure, your legal advisors to implement the new structure and your bank to ensure they understand the new structure with minimal to no disruption in their ability to serve you.

VAT considerations

Because of the importance of transactions in the construction industry, effective VAT management is crucial. Without proper guidance, you could set up VAT incorrectly, which could lead to severe penalties and tax implications.

Additionally, if you purchase a property and plan to use it for commercial or residential projects, you need reliable experts to help you navigate the VAT implications of your deal.

Risk management advisory

Managing risk is essential to any construction business. Whether addressing risk within the context of the market, interest rates, currency or credit, we consider every element that could affect your financial portfolio.

Invest in sustained growth

Sustainable growth requires long‑range planning, but the day‑to‑day details of running a construction business can often take up all your attention and energy.

With our extensive industry experience and knowledge, we’ll help manage the critical financial, strategic and tax requirements your company faces. We’ll also design and implement strategic growth and succession plans, providing you with a blueprint for lasting success.