By Amiri Wabusimba.
The Uganda Support to Municipal Infrastructure Development (USMID) program, initiated with a US$150 million loan from the World Bank-IDA, was designed to drive urban transformation in Uganda by enhancing municipal infrastructure and institutional performance.
The first phase of the program (2013-2018) achieved significant improvements in areas such as road rehabilitation, market construction, public space beautification, and drainage systems.
However, despite these visible advancements, key concerns linger regarding resource allocation, tax revenue utilization, and the equitable distribution of benefits across Uganda’s municipalities.
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In its second phase, USMID-AF, which received an additional US$360 million, extended its impact to municipalities like Mubende, facing the complex challenge of balancing urban development with the provision of basic services amid rapid population growth, especially in refugee-hosting districts.
The program’s expansion in these areas was a timely intervention, addressing infrastructure pressures that have emerged with the increase in urban and refugee populations.
Projects like the rehabilitation of roads, such as Katwe Kyaterekere and Rwabusagara, along with the construction of market stalls and beautification of public spaces, such as the mayor’s gardens, highlighted the program’s positive contributions to the municipality’s physical and social infrastructure.
Despite these tangible improvements, questions remain about the accountability of local authorities, particularly regarding the use of municipal tax revenue.
In Mubende, where USMID covers most of the funding for infrastructure, the concern is that essential services such as education, healthcare, and electricity continue to be underfunded.
This raises an important issue: are municipal taxes, such as trading licenses and property taxes, being allocated properly, or are they being misused or diverted for other purposes?
As a residents we are questioning the transparency of local government spending, especially when the visible development appears to be driven largely by external funding, like that from USMID.
The privatization of services like waste management, contracted to companies such as Home Kline, raises additional concerns.
While these contractors receive payments directly from residents for garbage collection, there is little transparency about how these funds are used within the community.
Are they being reinvested locally, or are they directed elsewhere? This lack of accountability raises important questions about whether these payments are truly benefiting the community or supporting external interests.
Moreover, the growing dependence on citizens to cover gaps in local government services highlights a troubling shift in responsibility.
Citizens expect their taxes to fund improvements in essential services, yet many find that visible infrastructure projects are primarily supported by external donor funding, not their own tax contributions.
The privatization of services may appear efficient initially, but it brings to light critical concerns about long-term sustainability and accountability at the local level
The financial report for Mubende Municipal Council for FY 2023/24 reveals troubling discrepancies in service delivery.
By the end of the third quarter, the council had received UGX 29,390,268,000 out of a revised budget of UGX 33,974,815,000, representing 90% of the expected budget. While this achievement was largely due to the disbursement of the USMID grant, essential services like waste collection remained reliant on citizen contributions.
Additionally, a significant portion of the funds, particularly from USMID, remained unspent due to delays in project certification.
The council has also faced challenges with poor performance in transfers from other government agencies, receiving only 32% of expected funds, compounded by delays in donor funding.
While infrastructure projects like roads and public spaces have flourished, sectors such as education, healthcare, and electricity continue to suffer from neglect, further deepening inequalities in urban development.
To ensure that USMID benefits all sectors of society, local governments must be held accountable for the fair and equitable distribution of resources.
The shift away from donor dependency toward sustainable urban growth is essential.
Transparent governance, coupled with efficient use of public funds, will be critical in realizing a comprehensive and inclusive urban transformation that benefits all Ugandans.
While USMID has significantly impacted Uganda’s urban development, the challenge lies in addressing the systemic issues surrounding resource allocation and the equitable distribution of benefits.
The true measure of success will not just be in constructing infrastructure but in ensuring that these developments translate into tangible, lasting improvements for all citizens, especially in sectors that remain underfunded and underserved.
Robust accountability and transparent governance are essential to ensure that the benefits of urban development are shared equitably across all sectors of society.
Author is a diplomatic Scholar, Journalist, political analyst and Human Right activist
Tel: +56775103895 email: Wabusimbaa@gmail.com.
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