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ROLE of CITY GOVERNMENTS in ECONOMIC DEVELOPMENT of GREATER KAMPALA Public Disclosure Authorized Public Disclosure Authorized

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ROLE of CITY GOVERNMENTS in ECONOMIC DEVELOPMENT of GREATER KAMPALA Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized FROM REGULATORS TO ENABLERS: THE ROLE OF CITY GOVERNMENTS IN ECONOMIC DEVELOPMENT OF GREATER KAMPALA Public Disclosure Authorized Public Disclosure Authorized SEPTEMBER 2017 Public Disclosure Authorized For more information please visit www.worldbank.org/uganda Join discussion on: http://www.facebook.com/worldbankafrica http://www.twitter.com/ worldbankafrica http://www.youtube.com/ worldbank © 2018 International Bank for Reconstruction and Development / International Development Association or The World Bank Group 1818 H Street NW Washington DC 20433 Telephone: 202 - 473-1000 Internet: www.worldbank.org and conclusions expressed in this work do not necessarily reflect the views of The World Bank, its Board of Executive Directors, or hte governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colours, denominations, and other information shown on any map in this work do not imply any judgement on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaires. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encourages dissemination of its knowledge, this work may be reproduced, in whole or in part, for non commercial purposes as long as full attribution to this work is given. Publishers, The World Bank, 1818 H Street NW, Washington DC 20433, USA; fax: 202 - 522 - 2422; e-mail: [email protected]. Photography: Morgan Mbabazi Design/Layout: Typesetting, graphics and page layout: Shetty Foto Fast Ltd Printied in Uganda by Shetty Foto Fast Ltd Additional material relating to this report can be found on The World Bank Uganda website (www.worldbank.org/uganda) REPUBLIC OF UGANDA From Regulators to Enablers: Role of City Governments in Economic Development of Greater Kampala SEPTEMBER 2017 i Standard Disclaimer: This volume is a product of the staff of the International Bank for Reconstruction and Development/ The World Bank. The findings, interpretations, and conclusions expressed in this paper do not necessarily reflect the views of the Executive Directors of The World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The World Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. Copyright Statement: The material in this publication is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. The International Bank for Reconstruction and Development/ The World Bank encourages dissemination of its work and will normally grant permission to reproduce portions of the work promptly. For permission to photocopy or reprint any part of this work, please send a request with complete information to the Copyright Clearance Centre, Inc., 222 Rosewood Drive, Danvers, MA 01923, USA, telephone 978-750-8400, fax 978-750- 4470, http://www.copyright.com/. All other queries on rights and licenses, including subsidiary rights, should be addressed to the Office of the Publisher, The World Bank, 1818 H Street NW, Washington, DC 20433, USA, fax 202-522-2422, e-mail pubrights@ worldbank.org. ii Acknowledgments The report forms part of the Non-Lending Technical Assistance (NLTA) Project on the Economic Performance of African Cities, which aims to support the Kampala Capital City Authority and the Ministry of Kampala and Metropolitan Affairs as one of four African cities covered by the project. The task team at the World Bank was led by Emma Wadie Hobson (Task Team Leader, Urban Specialist, GSURR1) and Megha Mukim (Co-Task Team Leader, Senior Economist, GSURR), under the supervision of Somik V. Lall (Global Lead for Territorial Development, GSURR) and Bernice Van Bronkhorst, (Practice Manager, GSURR). Team members included Angus Kathage (Consultant, GSURR), Joel Mundua (Consultant, GSURR), Olivia D’Aoust (Economist, GSURR), (Juni T. Zhu, Private Sector Specialist, GTC), Martin Onyach- Olaa (Senior Urban Specialist, GSURR) and Stephen Ajalu (Urban Development Specialist, GSURR). Strategic guidance was also provided by Roland White (Global Lead for City Management, Governance and Financing, GSURR) and Peter Ellis (Lead Urban Economist, GSURR). This report was written by Angus Kathage (Consultant, GSURR) and Emma Wadie Hobson (TTL, GSURR) based on background papers produced for the project by various prominent researchers and World Bank staff: - Economic Policy Research Centre (2017) Barriers to Firm Expansion and Transition in Greater Kampala, Kampala - J. Randriamamonjy, Thurlow, J. International Food Policy Research Institute, IFPRI (2016). Investing in Job Creation and Income Growth in Kampala. Washington D.C. - Anderson, S,J, Lazicky, C, Titley, J. (2017) Growth Constraints of Small Businesses in Greater Kampala, Uganda Stanford University - Kathage, A (2016) Enabling Factors For Micro-Enterprise growth in Kampala. Department of Geography and Environment. The London School of Economics and Political Science. London. - Iddawela, Y (2016) Do Access to Land Issues Constrain the Growth of Manufacturing Firms? A study of Manufacturing Firms in Greater Kampala. Department of Geography and Environment. The London School of Economics and Political Science. London. - Bouasba, S (2016) Small firms and taxation in Greater Kampala. Department of Geography and Environment. The London School of Economics and Political Science. London. - Tingting Zhu, J. Mundua, J. (2017) Greater Kampala Institutional Analysis, Washington DC - Uganda Bureau of Statistics (2017) National Manpower Survey, Government of Uganda - And background data analysis of Kampala’s Economic Profile by Olivia D’Aoust (Economist, GSURR), Angus Kathage (Consultant, GSURR) and Tristan Reed (Consultant GSURR). We would like to especially thank, the Executive Director of KCCA, Jennifer Musisi and her staff including, Patrick Musoke, Edson Masereka, Aceku Philemon and Enock Agwaimo. The Executive Director of the National Planning Authority, Joseph Muvawala and his staff most especially, Patrick Birungi, George Bwanga, Emmanuel Ongora and Justine Arinaitwe. Special thanks also go to the staff and management of Ministry of Kampala and Metropolitan Affairs, Ministry of Local Government and Ministry of Land Housing and Urban Development. Many thanks also to the Chief Administrative Officers and staff of the GKMA Local Governments including Mpigi District Local Government, Wakiso District Local Government, Mukono, Entebbe Makidye Ssabagabo, Nansana and Kiira Municipality. This report and technical assistance project would not be possible without the generous support of UK Aid, Department of International Development (DFID). 1 Social, Urban, Rural and Resilience Global Practice at the World Bank. iii Contents Acknowledgments........................................................................................................................................................iii Acronyms...................................................................................................................................................................v Executive Summary.......................................................................................................................................................................vi 1. Background and Greater Kampala’s Scope and Capacity.....................................................................................1 1.1 Greater Kampala’s scope and capacity...........................................................................................................5 2. Greater Kampala’s Importance and Recent Economic Performance....................................................................13 2.1 Greater Kampala’s economic role and performance...................................................................................14 2.2 Understanding Greater Kampala’s Informal Sector......................................................................................21 2.3 Generating jobs in high productivity sectors................................................................................................28 2.4 Challenges Greater Kampala faces to build its productive sectors.........................................................33 3. Building a competitive city – Greater Kampala’s urban environment................................................................35 3.1 Moving from a disconnected toward a connected city..............................................................................36 3.2 An expensive urban environment for business.............................................................................................46 3.3 An Underlying issue - Complex land tenure.....................................................................................................49 3.4 Effective Institutional Coordination will be key to better urban planning and infrastructure provision across the GKMA ...............................................................................................................................51 4. Enabling business growth – Enterprise Support in Greater Kampala..................................................................55 4.1 Cost of finance – too high and prohibitive to growth..................................................................................56
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