Uganda’s ambitious drive to transform its tourism and oil and gas sectors, key pillars of its economic future, faces a significant setback after the Ministry of Works and Transport announced the suspension and slowdown of several critical road construction projects due to severe funding shortfalls.
The decision, revealed by Works Minister Gen. Katumba Wamala to Parliament on Tuesday, casts a shadow over the nation’s development agenda, particularly impacting two of its most promising growth engines.
Gen. Wamala told the Parliament that out of the Shs2.4 trillion needed for the projects, the Government provided only Shs682Bn in the 2025/2026 financial budget, leaving a funding shortfall of Shs2,472 (Two trillion, four hundred and seventy-two million), which has resulted in the suspension of 27 road projects.
Uganda boasts a road network of approximately 159,000 kilometres, with roughly 5,000 kilometres paved.
While considerable progress has been made in recent years to upgrade this infrastructure, a reliable and extensive network remains crucial for unlocking the full potential of both tourism and oil exploration in often remote regions. The current funding crisis directly threatens this progress.
Tourism and Oil and Gas Sectors Under Strain
The suspension and slowdown of these road projects are set to inflict a heavy toll on Uganda’s vital tourism, and oil and gas industries as follows:
Impact on Tourism
Uganda aims to become Africa’s top sustainable and competitive tourism destination, targeting USD 4 billion in tourism earnings by 2030. This ambition heavily relies on improved accessibility to its natural attractions, particularly national parks and heritage sites.
Degraded Tourist Access
Roads to iconic destinations like Bwindi Impenetrable National Park (home to half the world’s mountain gorillas), Mgahinga Gorilla National Park, and Kidepo Valley National Park are often challenging, especially during rainy seasons. The indefinite suspension of key projects will aggravate existing difficulties, deterring tourists, increasing travel times, and raising operational costs for tour operators.
Missed Opportunities for Expansion
New tourism circuits and emerging attractions, particularly in Western and Northern Uganda, depend on reliable road networks. Stalled projects mean these areas remain inaccessible, limiting the sector’s geographical expansion and diversification.
Negative Perception
Infrastructure bottlenecks can create a negative perception among international visitors and investors, potentially redirecting tourism flows to countries with more developed transport networks.
Higher Operational Costs
Tour operators face increased wear and tear on vehicles, higher fuel consumption due to poor roads, and longer transit times, ultimately impacting their profitability and the competitiveness of Uganda as a destination.
Impact on Oil and Gas
The development of Uganda’s oil and gas sector, particularly the Tilenga and Kingfisher projects in the Albertine Graben, is intrinsically linked to reliable infrastructure. The ‘critical oil roads’ are essential for transporting heavy equipment, personnel, and eventually, products.
Delays in First Oil
The immediate suspension of critical oil roads like Masindi-Biiso and Kabale-Kaziranfumbi, due to an unpaid Shs111 billion, directly jeopardises the timeline for achieving first oil production, currently projected for mid-2026.
These roads are vital for accessing well pads, processing facilities, and supporting the massive logistics chain required for oil extraction.
Increased Project Costs
Delays in land acquisition and payment arrears, impacting projects like the Busunju-Kiboga-Hoima Road and Karuma-Olwiyo, lead to cost overruns for oil companies. Contractors may invoke penalty clauses, driving up the overall cost of oil development, potentially impacting national revenues.
Operational Bottlenecks
The inability to transport vital equipment or personnel efficiently creates logistical nightmares, impacting drilling schedules, construction phases, and overall operational efficiency.
Investor Confidence Erosion
Chronic funding shortfalls and project suspensions can erode investor confidence in Uganda’s commitment to supporting its major resource projects, potentially affecting future foreign direct investment.
Projects Under Duress
Gen. Katumba Wamala’s detailed report to Parliament paints a grim picture of the road sector’s distress, and the projects currently suspended due to nonpayment include:
Masindi-Biiso and Kabale-Kaziranfumbi (Critical Oil Roads) – facing UGX 111 billion in unpaid dues.
Najjanankumbi-Busabala
Moroto-Lokitanyala
Mityana-Mubende
Kampala-Jinja Highway
Projects Progressing at a Reduced Rate due to Delayed Payments or Incomplete Land Acquisition:
Kira-Kasangati-Matugga
Kisubi-Nakawuka-Nateete
Nakawuka-Kasanje-Mpigi
Nakawuka-Mawagulu-Nanziga-Maya
Kasanje-Buwaya, and Entebbe-Nakiwogo
Alwii-Nebbi Road
Matugga-Semuto-Kampala
Karuma-Pakwach Road
Busunju-Kiboga-Hoima Road
Karuma-Olwiyo and Olwiyo-Packwach Sections
Adding to the woes, key bridge projects, including the vital Katonga Bridge (Lwera and Kalandazi Swamp crossings along Masaka Road), Upper Katonga Bridge along Kabulasoke-Villa Maria Road, and Ssezibwa Bridge, remain under constrained progress.
These bridge projects are crucial for ensuring connectivity and preventing logistical chokeholds across the national network, yet they also connect to key tourist attractions in the country.
This widespread suspension and slowdown of critical infrastructure projects thus present a formidable challenge to Uganda’s economic aspirations.
The immediate priority for the government will be to address these funding gaps to prevent further delays that could significantly impede the growth trajectory of its pivotal tourism and oil and gas sectors, ultimately affecting broader national development goals.