Writer: Stephen Mawuli Azumah. PHOTO/COURTESY
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.
But what if there was 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.
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.
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 and engage private investors (local and international) who are eager to support infrastructure development.
There are other African countries not limited to these below which have walked this path and succeeded; Lagos State in Nigeria 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 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.
The Tanzanian government and Dar es Salaam City Council have used municipal bonds to finance key urban infrastructure, including roads and storm water drainage systems.
These examples show us that this is not theory — it's a proven financial tool that works.
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.
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.
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.
The writer, Stephen Mawuli Azumah, is a Country Treasurer, United Bank for Africa - Uganda
