The government has set aside shs42 billion to support private hotel investors in Gulu and Lira as the two northern Uganda cities prepare for the 2027 Africa Cup of Nations (AFCON), State Minister for Sports Peter Ogwang has said.

The financing will enable hotel owners to renovate, expand and upgrade their facilities to meet expected accommodation demand during the continental football tournament.

Ogwang said private hotel operators will access the financing through a government-supported arrangement managed in partnership with the Uganda Development Bank (UDB).

Successful applicants will access loans at an interest rate of five per cent, with a three-year grace period before repayment begins.

“The money is there for the private sector. Hotel owners will be able to borrow and repay at five per cent, with a grace period of three years, depending on how the investor engages with the Development Bank,” Ogwang said.

He was speaking on Sunday during a two-day Acholi Parliamentary Group (APG) regional consultative meeting at Acholi Inn Hotel in Gulu City.

The meeting brought together legislators and other leaders to discuss development priorities and investment opportunities in the Acholi sub-region, including infrastructure, tourism, sports and preparations for AFCON 2027.

Uganda will co-host the tournament with Kenya and Tanzania.

Ogwang said Gulu and Lira have been identified as important locations in Uganda’s preparations and could benefit from increased business activity associated with the tournament.

He said the Ministry of Sports will engage hotel owners in the two cities to assess existing facilities and determine the upgrades required to accommodate teams, officials and visitors.

“We shall engage the hotel owners and assess what they have, what needs to be improved and what can be done to prepare them for AFCON,” he said.

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The ministers said he would write to hotel owners in Gulu and Lira and invite them to a meeting with officials from the Ministry of Sports and other agencies involved in the preparations.

The proposed financing could allow existing hotels to upgrade their facilities rather than wait for new accommodation establishments to be built.

Beyond hotels, increased visitor numbers could generate business for restaurants, transport operators, tour companies, suppliers and other enterprises linked to the hospitality sector.

Leaders call for lasting benefits

Acholi Parliamentary Group chairperson and Omoro District Woman MP Catherine Lamwaka welcomed the proposed financing, saying the region should position itself to benefit from major national programmes and emerging economic opportunities.

Lamwaka said the hotel investment should form part of a broader strategy to ensure that government programmes generate tangible benefits for communities in northern Uganda.

She said the APG’s regional consultations were intended to bring leaders and stakeholders together to identify opportunities and improve coordination in pursuing development across the Acholi sub-region.

“We want to build synergy with regional leaders to strengthen teamwork, coordination and a unified approach to regional development,” Lamwaka said.

Lamwaka, who was elected APG chairperson in July, said the group would focus on social and economic transformation in Acholi, including wealth creation, education and poverty reduction.

She said opportunities created by AFCON should be planned for in a way that allows communities to benefit beyond the tournament period.

Kilak South MP Gilbert Olanya said the hotel investment programme should create lasting economic opportunities rather than focus solely on preparations for the tournament.

He said the region should use major events such as AFCON to improve infrastructure and attract private investment.

Olanya said investment in accommodation should be accompanied by improvements in roads, transport, tourism facilities, sports infrastructure and other services needed to support increased movement of people.

The legislator has previously called for greater investment in sports infrastructure outside Kampala, arguing that regional facilities can create opportunities for young people and support sports development.

Gulu district LC5 chairperson Justine Obol also welcomed the proposed financing, saying increased investment in hospitality could stimulate economic activity.

Obol said Gulu’s position as a regional commercial centre gives it an opportunity to benefit from increased visitor numbers if the city and surrounding areas have sufficient accommodation and supporting infrastructure.

He said local leaders would need to work with central government and private investors to ensure that AFCON-related opportunities translate into employment and business opportunities for local communities.

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The proposed financing comes as leaders in Acholi seek to attract more investment to the sub-region.

During the APG meeting, political, cultural, religious and business leaders called for stronger cooperation to accelerate development in Acholi.

Ogwang urged hotel owners in Gulu and Lira to begin preparing their facilities for assessment rather than wait until preparations for the tournament are at an advanced stage.

He said the financing is intended for private-sector investment and that individual investors will have to engage UDB on the specific terms and requirements for accessing the funds.

The assessment will establish the capacity of existing hotels, identify gaps and determine which facilities can be upgraded to accommodate teams, officials and visitors during AFCON.

For Gulu, the investment comes as the city continues to position itself as a regional hub for business, tourism and services in northern Uganda.

If implemented, the upgrades could leave the region with improved accommodation facilities and a stronger hospitality sector capable of serving visitors beyond the tournament.

The shs42 billion facility therefore places private hotel operators in Gulu and Lira at the centre of northern Uganda’s preparations for the 2027 continental football championship.