Kampala – Uganda is set to take a bold step in reshaping its electricity distribution landscape as the government advances plans to assume full control of the sector. With the concession agreement of Umeme Limited, the country’s primary power distributor, nearing its conclusion on March 31, 2025, the government has put in place a well-structured strategy to ensure a smooth transition.
Strategic Investment for National Development
To facilitate this transition, the government is securing financial support amounting to US$190 million (approximately UGX 698 billion) from Stanbic Bank. This funding will support the final settlement of Umeme’s unrecovered capital investments, fulfilling Uganda’s contractual obligation as the concession period comes to an end. The Ministry of Energy and Mineral Development has engaged the Auditor General to conduct a valuation audit, ensuring transparency and accountability in the process.
Enhancing Local Oversight for a Sustainable Future
The shift from private-sector-led electricity distribution to a government-managed framework marks a significant milestone in Uganda’s energy sector. The Uganda Electricity Distribution Company Limited (UEDCL) is set to take over operations from April 1, 2025, with preparations having been underway for the past two years. The government has prioritized capacity-building efforts to equip UEDCL with the expertise and resources necessary to efficiently manage the national power grid.
A Commitment to Improved Service Delivery
Over the last two decades, Umeme has made substantial contributions to Uganda’s electricity infrastructure, injecting more than $600 million into power distribution systems. Despite the impending transition, the company has upheld its investment commitments to enhance service delivery. As Uganda prepares for this new phase, there is optimism that a state-controlled distribution network will pave the way for cost-effective electricity tariffs, improved efficiency, and greater access to power for all Ugandans.
A People-Centered Energy Sector
This transformation aligns with Uganda’s broader vision of self-reliance and industrialization. By assuming control of power distribution, the government aims to make electricity more affordable and accessible to households and industries, fueling economic growth and national development. While the long-term impact on electricity tariffs remains to be seen, this shift represents a significant opportunity for strategic investment in infrastructure, sustainability, and innovation in the energy sector.
Uganda’s transition towards a fully integrated, locally managed electricity distribution system is a testament to the country’s commitment to progress. As this new chapter unfolds, the focus remains on ensuring an uninterrupted power supply, expanding electricity access, and fostering national growth through a robust and reliable energy sector.
