- Lawmakers clash over Uganda’s power export loan for South Sudan, warning it could raise national debt and neglect domestic electricity users.
- Supporters argue that the power export loan for South Sudan will strengthen Uganda’s regional influence and boost economic growth.
Uganda’s Parliament has approved a US$121.96 million loan from the African Development Fund to finance its electricity export project to South Sudan—the decision, made during a heated sitting on October 30, 2025, divided lawmakers sharply.
Some members of Parliament (MPs) welcomed the move as a step toward regional integration and increased foreign income. Others criticised it as a debt burden that ignores Uganda’s high local electricity costs.
During the debate, Hon. Charles Tebandeke (NUP, Bbale County) presented the minority report and questioned the project’s transparency. He stated that key documents, including the Memorandum of Understanding (MoU) and the Power Purchase Agreement (PPA), were missing.
Tebandeke warned that Uganda’s energy exports to Rwanda, Kenya, Tanzania, and the DRC operate under undisclosed agreements, undermining public accountability.
He also highlighted the country’s domestic energy challenges. Although Uganda’s grid covers 25.3% of the population, only 15% of citizens have reliable access to electricity.
Tebandeke noted that importing countries pay less per unit than Ugandan consumers, who face charges above UGX 1,500 in areas such as Kalangala. “Why should Ugandans pay more for their own power?” he asked. He urged the government to reduce tariffs at home before expanding electricity exports.
Hon. Naome Kabasharira (Rushenyi County) raised similar concerns. She condemned frequent blackouts and questioned why power distribution remains weak despite surplus generation. Hon. Jonathan Odur (Erute County) also criticised the Ministry of Energy for slow project execution.
He cited the Electricity Scale-Up Access Project, which has achieved only 20% progress, and the stalled Masaka transmission line. “Out of 10.8 million households, only two million have electricity,” he said. Odur argued that citizens should not bear the cost of loans that fail to deliver results.
Several MPs defended the proposal. Hon. Siraji Ezama (NRM, Aringa County) said the project would promote regional trade and benefit Ugandan entrepreneurs in South Sudan. Hon. Edson Rugumayo (Western Youth Representative) added that exporting electricity would help Uganda use its excess power generation and ease the debt burden. He cited data showing that Uganda produced 2,000 megawatts in 2020 but used only 900 megawatts.
Defending the plan, Hon. Sidronius Okaasai, Minister of State for Energy, said regional power trade supports economic growth and energy security. “East African countries must share electricity to prevent shortages,” he stated. Uganda currently generates 2,056 megawatts and uses approximately 900 megawatts, leaving a substantial surplus available for export.
Hon. John Bosco Ikojo, Chair of the Committee on National Economy, explained that the 299-kilometre power interconnector will link the Karuma Hydroelectric Power Station to Juba through Nimule, Bibia, and Olwiyo. He said the project will balance Uganda’s energy surplus with South Sudan’s deficit. It is expected to trade 624 GWh of electricity in its first year and significantly reduce greenhouse gas emissions.
Parliament also approved two additional loans. A loan worth €342.5 million from Standard Chartered Bank will fund the Karuma–Tororo transmission line and the Ntinda Substation. Another, worth €230.4 million from Citibank, will support road projects in Jinja.
Ultimately, Parliament approved the power export loan for South Sudan, despite vocal opposition. Supporters hailed it as a milestone in regional energy trade and diplomacy. Critics, however, warned that it highlights Uganda’s widening gap between national ambition and local energy access.