Africa: World Bank Supports Uganda's Cities and Municipalities to Build Climate-Smart Infrastructure and Create Jobs

31 March 2026
World Bank (Washington, DC)
press release

Kampala — The World Bank Board has approved a six-year urban development program to improve the management of cities and municipalities and expand access to climate-smart infrastructure, services, and jobs for urban residents and displaced populations in refugee-hosting areas.

The Uganda Cities and Municipalities Infrastructure Development (UCMID) program will support 10 cities, 26 municipalities, and 13 refugee-hosting districts and directly benefit 5.6 million people, among them 600,000 refugees. With $540 million in financing from the World Bank's International Development Association (IDA), UCMID will deliver improved access to essential urban infrastructure and services such as all-weather roads, stormwater drainage, street lighting, public markets, and other urban amenities. These investments will enhance mobility, reduce flood risks, and improve public safety, while also stimulating local economic activity.

"With Uganda's urban population projected to more-than-double in the next two decades, it is essential that this rapid expansion translates into productive jobs for a youthful labor force rather than resulting in fragmented urban sprawl and increased informality," said Francisca Ayodeji (Ayo) Akala, World Bank Country Manager for Uganda. "With UCMID, we are supporting local governments to deliver climate-smart infrastructure that reduces flooding, improves mobility, and creates opportunities for youth and women. Importantly, the program will also strengthen services and livelihoods in refugee-hosting areas, so that refugees and their hosts can benefit together from safer, more productive towns and cities."

The program will spur the creation of at least 40,000 direct jobs, including 20,000 permanent ones in operations and services and an equal number through short-term work during construction. Improved infrastructure and local economic development will catalyze additional private sector employment further down the line.

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UCMID is the successor PforR to the popular Uganda Support to Municipal Infrastructure Development (USMID) Program which closed in 2024 and whose achievements it seeks to consolidate. The Ministry of Lands, Housing and Urban Development leads UCMID coordination and implementation, with involvement from the Ministry of Local Government.

Contacts

In Kampala: Bernard Tabaire, +256 772 575 140, btabaire@worldbankgroup.org

In Washington: Daniella van Leggelo-Padilla, +1 (202) 473-4989, dvanleggelo@worldbank.org

Read the original article on World Bank.

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