World Bank cautions Uganda on rapid urbanization

The World Bank has urged Uganda to plan for the increasing labor force in urban areas, warning that a failure to tackle the rapid urbanization would "turn the capital Kampala and major towns into slums."

The population in Ugandan cities will increase to 20 million in the next two decades from the current six million, according to a Word Bank report launched Tuesday.

"The typical Ugandan city has grown rapidly, but without sufficient policy coordination. The living environment does not provide decent housing or adequate public goods for a large proportion of city residents," the report said.

"If Uganda does not improve the working and living environment in urban areas, the problems will exacerbate congestion and other dis-economies of scale, thereby limiting the benefits of urbanization," it added.

According to Matia Kasaija, Uganda's Minister of Finance, the country is in the process of formulating a National Urban Policy.

"We know the solution but the problem is how to actualize it. There is no short cut, we must attract more investors to create jobs for youths," he said.

He said unemployed youths could be "a security threat" and the high unemployment rate could reverse the country's economic gains.

Henry Banyenzaki, Minister of State for Economic Monitoring in the Office of the President, said there are plans to decongest cities.

He said agro-processing for a country like Uganda which largely depends on agriculture would provide a lot of jobs for the unemployed youths. Endi