If you’ve driven around Kampala lately, you’ve likely encountered bumpy roads, potholes the size of bathtubs, and traffic bottlenecks worsened by poor road conditions. We all feel the pain — whether we’re motorists, taxi operators, boda riders, or just pedestrians. But what if there were a way for Uganda to fix these roads permanently, sustainably, and without waiting for donor funds or overstretching our national budget?
Let me introduce you to a solution that has worked in other African countries: road bonds.
What is a road bond?
A road bond is a special type of government-issued bond that raises money specifically to fund the construction, rehabilitation, and maintenance of roads. Just like the government issues treasury bills or bonds to raise funds for general budgetary support, a road bond is targeted — it allows the government to borrow money from the public or investors and use it only for roads.
It’s like the government asking for a loan from investors to fix the roads and promising to pay it back with interest over time. But here’s the good part: everyone wins. Investors get returns on their money, and Ugandans get smoother, safer roads that boost the economy, ease transport, and reduce costs for businesses and individuals alike.
Why Kampala needs a road bond now
Kampala is the beating heart of Uganda’s economy. With over 1.5 million people living in the city and millions more commuting for work and trade, our roads are under serious pressure. Bad roads cost us time, money (in fuel and repairs), and even lives. The government spends billions annually on road maintenance, but it’s not enough — the problem is too big.
Issuing a Kampala Urban Road Bond would allow us to:
Mobilize funds quickly and at scale.
Build and repair roads immediately — not in “phases.”
Avoid over-reliance on donor aid or increasing taxes.
Engage private investors (local and international) who are eager to support infrastructure development.
Success stories from across Africa
There are other African countries, not limited to these below, which have walked this path and succeeded.
Nigeria:
Lagos State issued a series of infrastructure bonds between 2008 and 2017. One notable bond raised ₦50 billion (about $130 million) and was used to upgrade roads and build new ones. Today, the Lekki-Epe Expressway stands as an example of bond-financed infrastructure.
Kenya:
Kenya is in the process of launching a green infrastructure bond to finance sustainable road and urban infrastructure projects. In the past, it has used infrastructure bonds issued by the Central Bank to raise money for roads and energy projects.
Tanzania:
The Tanzanian government and Dar es Salaam City Council have used municipal bonds to finance key urban infrastructure, including roads and stormwater drainage systems.
These examples show us that this is not theory — it’s a proven financial tool that works.
Ghana:
Established in 2014, the Infrastructure Investment Fund has supported the issuance of infrastructure bonds and worked with private partners to fund projects, including roads and transport hubs. GIIF-backed bonds have attracted institutional investors such as pension funds and insurance companies.
How would it work in Uganda?
Here’s a simplified step-by-step:
Government approval: Parliament or the Ministry of Finance approves a special bond for Kampala roads.
Bond structure: The bond can be structured for 5, 7, or 10 years and pay interest to investors semi-annually.
Investment: Banks, pension funds, insurance companies, and even individuals can buy the bond.
Project delivery: The funds go directly to the Kampala Capital City Authority (KCCA) or Ministry of Works and Transport to start road works — immediately.
Repayment: The government pays back investors over time using future road user fees, fuel levies, parking charges, or other designated revenue streams.
How you can support it
As a citizen, you can advocate for this solution through your leaders. Imagine buying a piece of a road project and earning interest from it! Even small investors can participate if the bond is made accessible to the public through banks and mobile platforms.
Final word: let’s think differently
We often hear the words “limited budget,” “donor fatigue,” or “lack of funds.” But Uganda has options. A Kampala Road Bond is a smart, self-reliant, and sustainable way to fix our urban road problems once and for all.
Let’s move from potholes to progress. Let’s take the bold step. Let’s build a better Kampala — one bond at a time.
ARTICLE BY Stephen Mawuli Azumah
Stephen is the country treasurer at United Bank for Africa (UBA), Uganda, a role he assumed in 2022 after serving as chief dealer at UBA Ghana for two years, with a career spanning over two decades in banking, treasury, and investment management.
Stephen holds an ACI Dealing Certificate and earned an MSc in Information Management & Finance from the University of Westminster, UK. He also holds a BSc in Physics and a Diploma in Education from the University of Cape Coast, Ghana.
