NSSF Willing to Fund Infrastructure Through Bonds
The National Social Security Fund (NSSF) has proposed funding major infrastructure projects across Uganda through targeted NSSF infrastructure bonds. The Fund says it has the resources to invest in critical infrastructure, such as roads, railways, airports, and utilities, if the government issues an infrastructure bond.
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What Are Infrastructure Bonds?
An infrastructure bond is a financial instrument that enables investors to fund the construction and maintenance of public projects. These bonds are typically issued by governments or state-owned enterprises to raise long-term capital. Investors receive regular interest payments and a return on their principal investment over time.
The proposal comes at a crucial time for Uganda, as the country faces a funding shortfall of Shs2.47 trillion for the 2025/26 financial year, leading to the halt or delay of at least 27 major road and bridge projects. These include vital transport routes for oil, trade, and national connectivity.
Delays in Infrastructure Projects
The Ministry of Works and Transport reports that 18 projects have stalled due to delays in government-funded financing, while another nine projects have been affected by the government’s failure to provide timely counterpart funding for externally financed projects.
A report by the Economic Policy Research Centre (EPRC) notes that although infrastructure spending remains high, delays in completing key projects—particularly in energy, transport, and logistics—could undermine their economic impact.
“During the 2025/26 financial year, the challenge is no longer prioritization but execution. Without timely delivery, infrastructure meant to unlock growth risks becoming a fiscal burden,” states the EPRC report.
NSSF’s Capacity to Invest in Infrastructure
NSSF managing director Patrick Ayota spoke ahead of the inaugural All-Africa Summit, which will be held from November 5–7. He confirmed that the Fund has already engaged the government on the proposal for an infrastructure bond. Ayota highlighted the Fund’s capacity to finance infrastructure development.
“We have approached the Minister to issue us an infrastructure bond so we can invest in these major projects,” Ayota said. “Uganda’s GDP stands at $61 billion, while NSSF’s portfolio is $17.4 billion, representing 13 percent of the economy. We have the capacity to invest in infrastructure development.”
