Uganda government secures Shs2.4 trillion to light up 900,000 households

More than 900,000 Ugandan households are set to gain access to electricity after the Government signed two major implementation agreements with the Uganda Electricity Distribution Company Ltd (UEDCL), unlocking Shs2.4 trillion ($638 million) under the Electricity Access Scale-Up Project (EASP).

The agreements—focused on results-based financing for grid expansion and household connectivity, as well as the provision of distribution materials—were sealed Friday during a ceremony held at Petroleum House in Entebbe.

Eng. Irene Pauline Bateebe, Permanent Secretary in the Ministry of Energy and Mineral Development, hailed the milestone as a transformative moment in Uganda’s electrification drive and energy transition agenda.

“These two agreements are part of the World Bank-supported Electricity Access Scale-Up Project. The first focuses on grid expansion and household connections, while the second supports off-grid energy access through private sector partnerships and financial intermediation,” she said.

Launched in 2023, the $638 million EASP aims to accelerate Uganda’s goal of achieving universal access to electricity by 2030—up from the current 60 percent. The project targets at least 1,075,000 new connections by 2027, with UEDCL responsible for over 900,000 of these.

Under the Free Electricity Connection Policy, households located within 90 metres of a low-voltage grid pole will receive connections at no cost. The initiative prioritizes rural communities, refugee-hosting districts, small businesses, and social institutions such as schools and health centres.

“We are targeting households, schools, health facilities, agro-processors, mining areas, and industrial parks,” Bateebe said. “Electricity is no longer a luxury. It is a critical enabler for poverty reduction, job creation, and economic transformation.”

The EASP will also promote clean cooking technologies and support Uganda’s climate commitments by reducing reliance on biomass fuels. The project is expected to generate an additional 500 MW of demand through both on-grid and off-grid solutions. Mapping of underserved areas like Madi Okollo, Obongi, and Lake Victoria’s islands is already underway.

UEDCL Managing Director Paul Mwesigwa said the company is well-prepared to implement the ambitious rollout.

“We’ve already hired 550 technicians and are onboarding 400 more to clear a backlog of 127,000 connection applications. Over 30,000 connections have already been completed,” he said.

To eliminate delays and curb exploitation by middlemen, Mwesigwa said the connection process has been fully digitized. Certified electricians and eligible customers can now apply online, while UEDCL uses its expanded national presence—including former UMEME offices—to expedite installations.

“We’re targeting 30,000 to 40,000 new connections per month. Our systems allow customers to apply, monitor progress, and receive services in real-time,” he noted.

Since its operational launch in February 2024, EASP has delivered more than 119,000 new connections. Officials expect the pace to increase significantly with the new agreements in place.

Beyond access, the project aims to foster inclusive development by powering micro-enterprises, schools, health units, and refugee communities. It also advances Sustainable Development Goal 7 on affordable and clean energy.

“This is more than just an infrastructure project,” Bateebe said. “It’s about giving Ugandans the tools to thrive—building businesses, improving health outcomes, and creating a brighter, more equitable future for all.”