In a high-level stakeholder engagement held this week at the Imperial Royale Hotel, the Uganda Civil Aviation Authority (UCAA) revealed a critical financial bottleneck that threatens to stall the nation’s soaring aviation ambitions.
The UCAA Director General, Mr. Fred K. Bamwesigye, revealed that as of June 2025, the government owes the Authority a staggering Shs 166.6 billion. Despite directives from the Parliament of Uganda for repayment, the ballooning debt, stemming from unpaid landing fees, rent, and services by various ministries and agencies, is effectively crippling the Authority’s ability to fund transformative expansion projects.
“One of the key challenges we are facing is that the government debt keeps increasing and as of June 2025, it stood at Shs 166.6 billion,” Mr. Bamwesigye said.
“Although efforts to engage the relevant government agencies to clear the debt are ongoing, it is important to note that this has affected many of our operations, as this money would be used to fund our expansion projects,” he added.
What Shs166.6 Billion Could Fund for UCAA
The aviation sector is currently in a race against time. According to Mr. Bamwesigye, with Uganda set to co-host AFCON 2027 and the oil and gas sector moving toward production, the UCAA has a roadmap of multi-billion shilling projects that currently sit in the funding gap category.
He noted that if the government cleared its Shs166.6 billion arrears, these critical initiatives being undertaken by the UCAA could see immediate acceleration:
Arua Regional International Airport (Code 4E)
The UCAA is undertaking a planned US$143 million (Shs529 billion) overhaul to transform Arua into a West Nile hub. The debt alone would cover nearly 30% of this project’s first phase.
Gulu International Airport Upgrade
He revealed that the Authority is fast-tracking the resurfacing of runways and the construction of a new terminal and control tower by SAMCO to meet AFCON 2027 requirements.
The UCAA Aviation Training School
Mr. Bamwesigye observed that a strategic plan to establish a local training hub to build domestic capacity and reduce the cost of training pilots and engineers abroad is also being undertaken by UCAA and requires funding. He revealed that land for the construction of the aviation training school has already been secured by the UCAA, although there is still a funding gap.
Advanced Air Surveillance and Drone Management
He noted that in a bid to enhance operations of the aviation sector, the UCAA is in the process of procuring an Automated Unmanned Aircraft System Traffic Management (UTM) to secure Uganda’s increasingly crowded airspace against unauthorised drone activity, which also requires critical funding.
The Central Nervous System of the Economy
Mr. Bamwesigye emphasised that aviation is not a luxury; it is a “strategic national enabler” with direct, non-negotiable links to every pillar of Uganda’s National Development Plan (NDP IV).
Trade and Regional Integration
He pointed out that aviation is the backbone of high-value exports, noting that Uganda’s fish, flowers, and premium agricultural products rely on the speed of air transport to reach global markets in Europe and the Middle East.
Furthermore, as a signatory to the Single African Air Transport Market (SAATM), modern airports are essential for Uganda to compete in the African Continental Free Trade Area (AfCFTA).
Tourism and The Last Mile Connection
Mr. Bamwesigye reiterated that over 58% of international tourists arrive by air, hence upgrading upcountry aerodromes like Kidepo, Pakuba (Murchison Falls), and Kasese (Queen Elizabeth) is vital for connecting tourists directly to the wilderness, bypassing long road journeys and increasing tourist spend per visit. He noted that if the government cleared the debt, the UCAA would be in a position to execute that.
Oil, Gas, and Infrastructure
As an enabler of the oil and gas sector, the Kabalega International Airport in Hoima, which is being constructed under the stewardship of the UCAA, is the heartbeat of the Albertine region. It facilitates the movement of heavy equipment for the refinery and the EACOP, ensuring the oil sector hits its 2026 production targets without logistical delays. But according to Mr. Bamwesigye, its construction requires funding gaps that could be offset if the government cleared the debt it owes to the UCAA.