KAZIRO KYAMBADDE: The Next Phase of Uganda’s Growth Will Depend on Where Capital Flows

What the report says

In an opinion piece published by Watchdog Uganda, Kaziro Kyambadde argues that Uganda’s next stage of growth will depend less on the amount of capital available and more on how that money is allocated. He says the country’s economy has shown resilience, citing growth estimated at about 6.3% to 6.4% in FY 2024/25 and FY 2025/26, alongside expanding private-sector credit, but warns that those figures alone do not show whether finance is reaching the sectors that can drive long-term transformation.

The article points to commercial-bank lending rates in the high teens, which Kyambadde says make it difficult to fund investments that take years to pay off. He highlights agriculture, manufacturing, and small and medium-sized enterprises as priority areas for capital that supports value addition, equipment, storage, industrial capacity, and supply-chain expansion. He also stresses the importance of productive infrastructure such as energy, transport, logistics, digital networks, water, and warehousing, noting that reliable systems can improve competitiveness across the economy.

Kyambadde further argues that climate-resilient and green investment should be treated as a present need rather than a future option. He says sectors such as renewable energy, climate-smart agriculture, waste management, and resilient infrastructure need financing early enough to adapt and grow. The piece concludes that Uganda should shift toward patient capital, greater private investment in national priorities, and lending models that measure success by jobs, productivity, and value added rather than credit volume alone.