Land costs and citywide benefits of road improvements in a sub-Saharan African city: Evidence from Kampala

Policy brief Sustainable Growth and Cities

This policy brief gives recommendations from a study estimating road improvements' costs, benefits, and net returns in Kampala, Uganda, a typical sub-Saharan African city.

  • This study estimates the costs, benefits, and net returns of road improvements in Kampala, Uganda, a typical sub-Saharan African city.
  • Improving the existing road network has local benefits, including improved road quality, increased traffic speed, and decreased dust. These factors increase the values of properties bordering these roads by an average of 26%.
  • Improving the road network also generates citywide benefits through enhanced traffic flow and connectivity, approximately five times greater than the size of local benefits.
  • Road improvement requires expensive additional land acquisition, representing a challenge for countries like Uganda, which faces the high cost of raising domestic funds. In turn, land costs can threaten the implementation of these projects.
  • This policy brief highlights the costs and benefits of road improvements in Kampala and discusses policy implications.