Uganda to borrow US $287m for rural electrification

The Ugandan government through the Ministry of Finance Planning and Economic Development plans to borrow US$287 million for the Rural Electrification project in the country.

Source of Funds

Mr. David Bahati the Minister of Finance said that they will get funds from the Exim Bank of China. He also added that it intends to finance rural electrification projects in 287 sub counties. Of course these are counties across the country whose connections that are not yet part of the National grid.

Additionally he observed that there is improvement in distribution of clean energy in remote areas. However distribution of power to other parts is still a challenge for the government. This is especially in the Karamoja, West Nile and other parts of the country especially in the islands.

He also stated that as a government they are in final discussions with the bank to ensure that the funds are secure to finance rural the electrification program in the country.

According to the Minister the Government through the Rural Electrification program have managed to extend power to most parts of the country hence improving the people’s lives. He also disclosed that currently the number of Ugandans accessing electricity has risen.

The Minister also noted that the Government has initiated many economic improving programs such as Operation Wealth. Consequently improving agricultural production. However many farmers are not adding value due to their places not being connected on the national Grid.

According to him when all the major towns are connected on the national grid, the country will register more social and economic transformation. This is especially when it comes to adding value to agricultural produces. Not only that, power availability also stimulates the development of Small and Medium Enterprises.

Karamoja and West Nile regions are lagging behind as far as access to clean energy according to the UBOS report.  The data reveals that in Karamoja  power connection stands at 0.6% and for West Nile stands at 3.3%.

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