However, I think that the contention that there is under-investment by the private sector in urban structures is tenuous. Uganda does not lack investment in structures. Over the last five years, an average of 18 percent of GDP has been invested in structures in Uganda, with investment in structures comprising 70 percent of total gross fixed capital formation.
In Kampala, the bulk of private investment comprises residential and commercial buildings. These investments provide only a very limited number of jobs and yield low real rates of return. In many cases the income earned from property is far lower than the cost of capital.