EU set to invest $63 million in upgrading Uganda power plant


The European Union is set to invest $63 million in upgrading one of Uganda’s largest hydropower plants, in an effort to address the financing gap and modernise the country’s ageing energy infrastructure.

The Nalubaale and Kiira hydropower plant complex, located at the source of the River Nile in Jinja, is Uganda’s oldest power plant and has been in operation since 1954. With a capacity of approximately 380 megawatts (MW), this plant plays a crucial role in providing electricity to the region.

EU set to invest $63 million in upgrading Uganda power plant
EU set to invest $63 million in upgrading Uganda power plant

Previously, South African power company Eskom had been running the plant under a 20-year concession agreement that ended earlier this year. Following the expiration of the agreement, the Ugandan government regained control of the plant.

Recognizing the need for rehabilitation and improvement, the EU has committed to investing $63 million in the upgrading of the Kiira and Nalubaale hydropower plant. This significant investment is aimed at ensuring reliable energy supply to support Uganda’s industrialization efforts.

EU set to invest $63 million in upgrading Uganda power plant
EU set to invest $63 million in upgrading Uganda power plant.

Jan Sadek, the EU’s ambassador to Uganda, made this announcement during a mining conference held in the capital city, Kampala. However, Sadek did not provide specific details regarding the start of the project or whether the funding would be in the form of a grant or credit. Nonetheless, the investment will be made under the EU’s global gateways strategy, which aligns with the United Nations’ Sustainable Development Goals to be achieved by 2030.

The current state of Uganda’s energy infrastructure is a cause for concern, with inadequate funding and an ageing network resulting in frequent power outages and occasional breakdowns. With an installed capacity of around 1,400 MW, mostly from hydropower dams, Uganda’s power generation capacity is set to increase to 2,000 MW once the Chinese-built Karuma plant on the River Nile becomes operational this year.

EU set to invest $63 million in upgrading Uganda power plant
EU set to invest $63 million in upgrading Uganda power plant

By investing in the rehabilitation of the Kiira and Nalubaale hydropower plant, the EU aims to address these challenges and ensure a more stable power supply for Uganda. This investment will not only provide reliable energy for industrial activities but will also contribute to the country’s economic growth and development. Additionally, by supporting the country’s energy sector, the EU is promoting cleaner and more sustainable energy sources, in line with global efforts to combat climate change.

Uganda’s government has been actively seeking foreign investments to boost its energy sector and bridge the financing gap. The EU’s commitment to investing in the country’s power plant demonstrates its confidence in Uganda’s potential for growth and development.

Ericson Mangoli
Ericson Mangoli is the founder and Managing Editor of Who Owns Africa, a platform for African journalism that focuses on politics, governance, and business. With a passion for truth and a dedication to highlighting pressing issues in Africa, Mangoli has become a significant voice in the field. He embarked on this journey after graduating with a degree in communications and realizing his true calling was in investigative reporting and shedding light on untold stories.  Who Owns Africa provides thought-provoking articles, in-depth analyses, and incisive commentary to help people understand the complexities of the region. Mangoli is committed to impartiality and ethical reporting, setting high standards for his team. His vision for the platform is to foster critical thinking and promote informed discussions that have a positive impact on African society. Mangoli is known for his eloquent and insightful writing which tackles pressing issues in Africa. His articles cover a range of topics including political corruption, economic development, fostering international partnerships, and African governance. He sheds light on the complexities of these subjects and empowers readers to engage in conversations for positive change. Mangoli's coverage of African politics analyzes the factors that drive change and hinder progress, while his reporting on governance advocates for stronger institutions and policies. Additionally, he explores the challenges and opportunities facing African businesses and inspires readers to contribute to Africa's economic growth.


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