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Abstract. Uganda's Makerere University and the University of Dakar in Senegal were for many years after independence among Africa's premier universities. Today, their facilities have visibly deteriorated and the quality of instruction the institutions provide is seriously threatened -the consequence of political and economic turmoil combined with persistent underfunding. If higher education remains supply-driven without reference to available resources, the problems of Makerere and the University of Dakar can only increase and become even more unmanageable. The governments of Senegal and Uganda are being encouraged by donors to undertake reforms to revitalize the university sector. However, it will not be possible to reform financing of public higher education, or to carry out many other reforms, unless the universities have more administrative and financial autonomy. Strategies for reforming higher education systems in these countries are proposed requiring a shift from government participation in the governance of public universities and in matters affecting their enrolments and utilization of resources to more indirect forms of control. Nevertheless, the policy implications for Senegal and Uganda are very different. In Senegal, measures to increase autonomy must be articulated with a larger role for the state in regulating the flow of students to university, rationalizing the programs of different institutions and restricting students' eligibility for support. In Uganda, there is need for greater government co-ordination of public and private investments in higher education and significant devolution of control of public universities.