By Uganda Electricity Distribution Company Limited (UEDCL) has signed a five-year, $50 million (about Shs190 billion) financing agreement with Absa Bank Uganda to fund major upgrades to the country’s electricity distribution network .
The facility, signed Monday at the UEDCL Tower in Nakasero, will finance network upgrades and reinforcements, construction of new electricity substations, rollout of smart grid initiatives, and integration of renewable energy into the distribution system. The projects are expected to improve power reliability, reduce technical losses, and unlock suppressed demand by the close of 2026
Latest
644 Motorists Arrested In Nationwide ‘Arrive Alive’ Traffic Operation
UPDF 3 Infantry Division Passes Out 180 NCOs After Ideological Course
Pro-democracy Hong Kong tycoon Jimmy Lai convicted in high-profile national security trial
Outrage Grows as Masaka Priest Abducted by Armed Men Remains Missing
Mafabi Faults NRM for Failing to Harness Kigezi’s Tourism Potential
Unverified Circulating Clip Claims UPDF Soldier Held By Al-Shabaab
DPP Defends Chief State Attorney Birivumbuka, Dismisses Torture Allegations
UEDCL Board Chairperson Lydia Ocheng-Obo described the financing as timely, noting that the distribution network requires substantial capital investment. She said the agreement demonstrates confidence in UEDCL and sets a precedent for government agencies to access private-sector financing directly .
UEDCL Managing Director Paul Mwesigwa said the funding will support the government’s industrialisation agenda and universal electricity access goals while improving reliability and affordability of power supply. He added that the Electricity Regulatory Authority has allowed the loan to be incorporated into the tariff framework to help make the distribution segment self-sustaining .
“This investment will enhance the reliability and efficiency of the electricity supply system, thereby cementing our role in supporting Uganda’s economic growth,” Mwesigwa said, adding that the facility carries an interest rate of about 8 percent VAT inclusive, significantly below prevailing market rates .
Absa Bank Uganda Managing Director David Wandera said the bank was committed to mobilising long-term capital for infrastructure and energy projects critical to Uganda’s development. He said reliable power distribution is central to industrialisation, competitiveness and inclusive growth, and aligns with Uganda’s Vision 2040 and National Development Plan IV .
UEDCL, formed in 2001 following the unbundling of the former Uganda Electricity Board, owns electricity distribution assets below 33kV nationwide and assumed the sale and distribution licence at the end of 2024 after the expiry of Umeme’s 20-year concession .
Follow our WhatsApp Channel for more… https://whatsapp.com/channel/0029Vb6TpGqLtOjKB7S8OI3d
