How affordable mortgage financing is key to Uganda’s Tenfold Economic Growth Agenda

What the report says

In a commentary for The Independent Uganda, Andrew Musanje argued that affordable mortgage financing should be treated as a central part of Uganda’s plan to expand its economy from about US$50 billion to US$500 billion by 2040. He said that the country’s growth strategy will need stronger financial systems that help households and businesses invest in productive assets, not only gains in agriculture, industry, tourism, mining and technology.

Musanje pointed to housing finance as an underused driver of investment and employment. He said Uganda’s mortgage market remains small, with mortgage debt around 1 percent of GDP, while the housing sector itself contributes about 11 percent of GDP. He also cited a large housing shortage, describing demand as far above annual construction levels. In his view, the deficit is not just a shelter issue but a constraint on broader economic activity because housing supports jobs and demand in construction, materials, transport and professional services.

The commentary said many Ugandans still rely on savings to build homes, which can lead to unfinished or lower-quality housing and slow down economic turnover. Musanje argued that mortgage loans allow people with stable incomes to buy homes and repay over time, turning future earnings into current investment. He also said Uganda would need lower borrowing costs, longer-term funding, better land titling and more flexible products to expand access.

He added that Uganda already has some foundations for growth, including a capitalised banking sector and rising deposits, but said housing finance needs to be elevated as a national development priority to support urbanisation, inclusion and household wealth.