2024 and the future of Uganda’s construction industry
The New Year has finally arrived, and engineers are looking for the next big thing in the market. 2023 saw a rise in the cost of cement from approximately UGX 28,500 in 2021 to about UGX 36,000 for a single bag of cement, an increase attributed to the increased load shedding leading to power cuts to factories. There has been a steady growth of the construction industry in Uganda, with old structures being demolished for newer structures with modern designs and multiple floors that lead to increased business space for Uganda’s evergrowing population. The general city area continues to expand to the outskirts of Kampala, with areas such as Bukerere, Kigo, Kalagi, Wankulukuku among others seeing unprecedented growth. The price of Land in developed areas still ranges from UGX 70,000,000 to UGX 120,000,000 where as the price is still relatively low in areas that have seen less infrastructure development, typically ranging from about UGX 6,000,000 to UGX 35,000,000 for a standard 50×100 ft plot.
In terms of structural design, Uganda is an interesting region, with all types of buildings spawning at the same rate. There is an increase in the number of detached houses, apartments and commercial buildings without any specific theme. This indicates that there is still plenty of opportunity to invest in any kind of infrastructure, whether for rent or for sale, as there is currently no limiting factor outside the city center.
Artificial Intelligence (AI) has been the leader in disruptive technology in the past few years, but there has been little to no application on a large scale in the construction industry. Most Engineers and designers still use industry standard software such as ArchiCAD, AutoCAD, Revit, ETABS and StaadPro, which still require a lot of technical experience. Because Engineering requires high levels of precision with a near zero error rate, integration of Artificial Intelligence is still a long way from ready. We also expect to see an increase in the use of the BIMS (Building Information Management System) launched by the Ministry of Works and Transport, which is intended to simplify the application process for obtaining permission to start construction in Uganda.
There is so much to look forward to in this new year, and we wish you all the best!
