Auditor General flags poor returns on Shs1.3 trillion state investments

What the report says

Uganda’s Auditor General has raised fresh concerns about the performance of state-backed industrialisation investments, saying public money channelled through the Uganda Development Corporation and the Uganda Investment Authority is producing weak returns and suffering repeated delays. The findings were reported by Nile Post in connection with the 2025 audit covering government agencies and projects tied to industrial growth.

According to the report, about Shs1.3 trillion invested in 22 enterprises under UDC over the past decade generated only Shs1.4 billion in income in the 2024/25 financial year. The audit also says some borrowers had not repaid principal and interest on loans made through UDC, and that several sampled enterprises were still making losses or were not operating despite receiving public funding. The Auditor General linked part of the problem to government directives that earmark capital for specific projects, limiting UDC’s flexibility.

The report also flagged problems at UIA, which is responsible for industrial parks meant to attract investors. It said many companies given land in those parks were not yet fully operational because of missing infrastructure such as power, roads, drainage and waste systems. The audit further said planned regional industrial parks had not been fully established by mid-2025, and land titling gaps left more than 26,000 acres in 21 districts exposed to possible encroachment and disputes.

The broader significance is that the findings point to execution and governance challenges in Uganda’s push for industrialisation. In general, such audits are used to assess whether public investment is translating into jobs, production and revenue, but the report suggests stronger planning and infrastructure delivery are still needed.