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Ugandas electricity distribution is changing hands whats at stake
2025-05-01 16:45:03| Spiritual Career Counseling
Ugandas electricity sector is at a turning point, as Umeme Limiteds 20-year concession draws to a close. Umeme was the first private distribution operator in anglophone Africa. For nearly two decades, the listed company was the dominant distributor of electricity to the countrys 2.3 million clients. However, Uganda decided in 2022 not to renew the licence on expiry, citing high power tariffs and low electricity access rates.Umemes departure and the transfer of distribution assets back to the state-owned Uganda Electricity Distribution Company (UEDCL) has sparked controversy. It centres on a US$235 million compensation claim by Umeme. The final settlement could shape power tariffs, the sectors financial sustainability and investment needs in the country. Peter Twesigye, who researches power market reform, regulation and utility performance in Africa, examines the big questions.The numbers behind the controversyThe flashpoint is the amount the government must pay Umeme to bring the... [ more ]
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Employment