Parliament has raised concern over delays in financing hotels and preparing tourism facilities in Lira City ahead of the 2027 Africa Cup of Nations (AFCON), warning that the setbacks could undermine Uganda’s readiness to accommodate teams and officials during the continental tournament.
Boniface Okot, the Chairperson of Parliament’s Committee on Tourism, Trade and Industry, said on Tuesday, October 27, that the committee had discovered gaps in hotel financing and staff training despite earlier assurances that investors were receiving support through the Uganda Development Bank (UDB).
Speaking at Gracious Palace Hotel in Lira City, the Kole South MP said Parliament had been given the impression that hoteliers were already accessing the funds, only for the committee to establish that challenges remained unresolved.
He called for urgent engagement between the relevant government agencies and hotel owners to establish the status of the financing and address the bottlenecks before the tournament.
Dr. Patrick Olet, Chairperson of Hospital Owners under the Lira Chamber of Commerce, said none of the seven hotels in Lira City recommended for funding had received the money, raising questions about the progress of preparations.
Olet said hotel owners were also struggling with costly property valuations, with valuers charging between Shs15 million and Shs20 million, an expense he said investors had not anticipated when preparing to upgrade their facilities.
He added that some of the financing conditions, including requirements for major structural modifications, could discourage investors from proceeding with the arrangement. He warned that the delays could affect the city’s capacity to accommodate participating teams and AFCON officials.
Dokolo District Woman MP Sarah Aguti Nyangkori also faulted government agencies for providing conflicting information about the hotel financing programme, urging Parliament to intervene and clarify the arrangements.
Nakaseke North MP Prof. Wilber Manyisa Ahebwa questioned whether the hotels could meet the required accommodation standards within the remaining months, even if the funds were released immediately.
Ruhaama East MP Kahima Moses Mugabe called on the government to ease the financial burden on hoteliers through subsidies or grants, saying the high valuation costs could undermine efforts to prepare the facilities while keeping the businesses viable after the tournament.
The government plans to support private hoteliers in Lira City and Gulu through a Shs42 billion loan fund managed in partnership with UDB. However, the concerns raised by the committee and hotel owners point to questions over the pace of disbursement and the conditions investors must satisfy to access the money.
The financing concerns come as preparations for the Shs470 billion Akii-Bua Olympic Stadium in Lira City continue. The multi-purpose facility, being constructed by Egyptian firm SAMCO National Construction Company, is reported to be 85% complete, with handover to the government expected in January 2027.
Uganda will co-host AFCON 2027 with Kenya and Tanzania.