In a significant move to boost sports infrastructure ahead of the 2027 Africa Cup of Nations (AFCON), Uganda’s Finance Minister, Matia Kasaija, has announced that the government will direct tax proceeds from gaming and betting to develop sports facilities across the country. This decision aligns with Uganda’s commitment to hosting the prestigious tournament in partnership with other East African nations.
Rising Revenues from the Gaming Sector
Uganda’s gaming industry has witnessed a notable increase in revenue, which is poised to play a crucial role in funding the nation’s sports infrastructure projects. In the 2022/23 financial year, the National Lotteries and Gaming Regulatory Board (NLGRB) reported a surplus collection of Shs33 billion (approximately $8.87 million). The Board subsequently remitted Shs193 billion to the National Treasury, highlighting the sector’s growing financial significance.
Looking ahead, the government anticipates even higher revenue from the gaming sector, thanks in part to the entry of new players such as ITHUBA Uganda, the country’s first national lottery operator. With ITHUBA’s investment of Shs51.8 billion, the government projects that collections from lotteries and gaming will reach at least Shs300 billion in the 2024/25 financial year. This substantial increase reflects the expanding scope of Uganda’s gaming industry and its potential to support national development initiatives.
ITHUBA Uganda: A Game-Changer in the National Lottery Landscape
ITHUBA Uganda’s entry into the market marks a transformative moment for the country’s lottery and gaming sector. The company has already established jackpots totaling Shs2.8 billion across various games, signaling its intent to make a significant impact.
With the expected expansion of gaming activities, the national lottery is projected to generate substantial tax and non-tax revenues. Specifically, estimates suggest that gaming taxes could reach Shs87 billion, while non-tax revenues might amount to Shs60 billion. These funds are set to provide a solid financial foundation for Uganda’s sports infrastructure projects, ensuring the country is well-prepared to host the AFCON 2027.
Investment in Sports Infrastructure: Key Projects and Allocations
A significant portion of the projected gaming revenue will be allocated to the development and renovation of sports facilities across Uganda. One of the major projects in focus is the construction of Hoima Stadium, which is estimated to cost Shs280 billion. Parliament has already approved Shs152 billion for this project, demonstrating a strong commitment to enhancing the nation’s sports infrastructure.
In addition to Hoima Stadium, there are plans to renovate Namboole Stadium, a key venue for both local and international sporting events. The current budget also allocates Shs110 billion for constructing training facilities across the country, ensuring that athletes have access to high-quality amenities for preparation and competition.
These infrastructure investments are part of Uganda’s broader strategy to host the AFCON 2027 as part of the joint Pamoja bid with other East African countries, including Kenya and Tanzania. This collaborative approach not only strengthens regional ties but also positions East Africa as a prime destination for major sporting events.
Financial Commitments and Regional Cooperation
Hosting an international tournament like the AFCON requires substantial financial commitments. In line with this, Uganda needs to contribute $30 million in commitment fees for hosting rights. This cost will be shared with other East African countries involved in the joint bid, such as Kenya and Tanzania. This collaborative financial strategy reduces the burden on any single nation and fosters a spirit of regional unity and cooperation.
Implications for Uganda’s Sports Sector and Economic Growth
Directing gaming tax revenues towards sports infrastructure development has far-reaching implications for Uganda. Firstly, it ensures sustainable funding for crucial projects, reducing the reliance on external loans and grants. Secondly, it promotes the growth of the sports sector, which has the potential to drive economic growth through job creation, tourism, and increased international visibility.
The focus on developing sports infrastructure aligns with Uganda’s broader economic goals, which include fostering a more vibrant and inclusive economy. By investing in facilities that can host international events, Uganda is not only preparing for the AFCON 2027 but also positioning itself as a hub for future sporting activities and events.
Future Outlook: Preparing for a Successful AFCON 2027
With these investments and strategic allocations, Uganda is on a promising path towards hosting a successful AFCON 2027. The combination of rising revenues from the gaming sector and targeted investments in sports infrastructure indicates a well-thought-out approach to both short-term and long-term development goals.
As Uganda continues to enhance its sports facilities and prepare for the AFCON, the country is set to benefit from increased economic activity, greater international exposure, and the potential for a legacy of improved sports infrastructure that will serve future generations.
Uganda’s decision to allocate gaming tax revenues to sports infrastructure development reflects a strategic approach to leveraging domestic resources for national growth. With significant investments in stadium construction and renovation, as well as the development of training facilities, Uganda is laying the groundwork for a successful AFCON 2027 and beyond.