This policy brief explores innovative options available for infrastructure development financing in Uganda amidst the limited budget and competing demands in other sectors. It reveals that limited legal and regulatory frameworks, narrow tax base and a large informal sector as some of the impediments to revenue mobilization and as such pose financing challenges to infrastructure development in the country.

Inefficient planning, absorptive capacity and project preparation and selection are other constraints facing public investments particularly infrastructure development. This has resulted in weak public investment management and a slow down on returns to investment.  

The study discusses interventions to support revenue mobilization efforts and improvement of public investment efficiency to free up funds for other infrastructure investments. Similarly, Government deliberate efforts to diversify possible sources of financing and improved public investment management would result in reduced higher costs in terms of interest repayment.