economy 18 June 2026 Daily Monitor (Uganda)

Mbarara Poised to Drive Uganda's Next Growth Phase

As Uganda aims for significant economic expansion, secondary cities like Mbarara are emerging as crucial engines of growth beyond the capital, Kampala. Source: https://www.monitor.co.ug/uganda/oped/commentary/can-mbarara-city-help-drive-uganda-s-next-phase-of-growth--5500700

Uganda’s ambitious Vision 2040, targeting a tenfold increase in the economy, hinges on key pillars like agro-industrialization, tourism, mineral development, and science and technology. However, achieving this growth requires more than just infrastructure; it necessitates value addition and a skilled workforce, elements that the capital, Kampala, cannot solely provide.

Secondary cities, long discussed in development plans, are now being recognized as vital hubs for this expansion. The recent Real Estate Development & Investment (REDi) Conference in Gulu highlighted a growing consensus among stakeholders that these urban centers hold significant untapped potential. Mbarara, in particular, is emerging as a powerful economic force in western Uganda.

Strategically located, Mbarara is at the heart of a region rich in dairy and crop production, making it ideal for agro-processing and cold storage. Its position as a transit point for popular tourist destinations also opens doors for hospitality and cultural tourism development. Furthermore, the city’s proximity to mineral resources like tin and iron ore positions it as a base for mineral-based industries. With Mbarara University of Science and Technology already established and a new skills enhancement project underway, the city is also set to become a center for innovation and scientific advancement.

Realizing Mbarara’s full potential demands collaborative efforts. Questions about strengthening its competitiveness, attracting investment, and ensuring public infrastructure supports private enterprise are paramount. Financiers, investors, developers, and manufacturers must work alongside government agencies to unlock this potential. The upcoming REDi Conference in Mbarara will convene these key actors to foster practical investment and economic activity, treating real estate and infrastructure as enablers for manufacturing, trade, and tourism.

The future economic prosperity of Uganda will not be solely concentrated in Kampala, but will be built through the deliberate development of cities like Mbarara, Gulu, and Arua.

Source: Daily Monitor (Uganda)