Uganda in need of US$2.5bn to build power infrastructure

Uganda has embarked on a massive power infrastructure expansion plan and, according to the Electricity Regulator Authority, it will require approximately US$2.5bn by 2026 to invest in both the transmission and distribution system.

Less than 2% of the population in Uganda has access to the grid and only 7% of rural areas are currently electrified. Uganda’s electricity access rates are among the lowest by global standards. Under the country’s Vision 2040, increasing electrification is a major drive to achieving national social and economic development objectives.

Also read:Renewable energy in Uganda to be expanded to rural areas

Sabine Dall’Omo is the CEO of Siemens Southern and Eastern Africa. According to her a reliable and extensive power supply system is the fundamental prerequisite for economic growth.  She says that infrastructure and oil sector investments are likely to support growth in Uganda  over the medium term. She adds that Uganda has potential to diversify its economy and create opportunities for industrialization. This will then increase electricity demand, create sustainable revenue streams and opportunities for job creation.

Energy mix

She continues to say how the country has the potential of generating power from other renewable sources like Solar PV, wind, natural gas, peat and bagasse cogeneration. Uganda’s energy mix is currently generated from three main sources: biomass, thermal and hydropower.

In recent years the country implemented the regulatory framework to boost private sector participation and also the investment in the generation and distribution space.

Critical factors to sustainable infrastructure development
  1. Deploying the best innovative and reliable technologies
  2. Gaining access to low interest rate finance

Dall’Omo said that they want to support sustainable development with solutions and projects in Africa. She also said that they are actively reviewing the requirements for the organization to open an office in Uganda; of course  taking into consideration business sustainability.


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