Overview:
ew $50m funding deal between Absa Bank and UEDCL set to expand and modernize Uganda's power grid, helping to reduce electricity losses and improve nationwide supply.
KAMPALA, Uganda — Absa Bank Uganda has finalized a landmark five-year, $50 million (£40.4 million) debt financing deal with the Uganda Electricity Distribution Company Limited (UEDCL) to significantly expand and reinforce the nation’s power grid.
The utility company said the injection of capital marks its first commercial loan transaction since officially taking over the electricity distribution assets earlier this year.
UEDCL, which manages the national distribution network, expects the investment to connect more than 200,000 new customers by 2026. The funds are aimed at improving electricity reliability, reducing technical losses and making power more affordable across the country.
David Wandera, managing director of Absa Bank Uganda, said the financing was fundamental to the country’s economic ambitions.
“Reliable power distribution is foundational to Uganda’s industrialisation, competitiveness, and inclusive growth,” he stated, adding that the facility supports a more resilient and efficient network, in line with national development targets.
Paul Mwesigwa, UEDCL’s managing director, said the loan will allow the company to significantly boost the performance of the distribution system, thereby cementing its role in supporting the growth of Uganda’s economy.
The funds will be allocated to crucial projects including grid extensions, the installation of digital meters, and integrating renewable energy sources into the network.
The loan agreement was signed after receiving a “no objection” from the relevant Ministries of Energy and Finance.