- Uganda inaugurated the 600 MW Karuma Hydropower Plant, financed with $1.7 billion from China Exim Bank. This will boost total energy capacity to over 2,000 MW.
- Strategic projects under development, including transmission lines to South Sudan and neighbouring countries, aim to strengthen Uganda’s position as an energy supplier in East Africa.
- Challenges remain, including infrastructure maintenance and managing debt from Chinese loans, but Uganda continues to invest in expanding its energy grid and reducing electricity losses.
Uganda has opened the 600 MW Karuma Hydropower Plant, advancing its energy strategy. China Exim Bank provided 85% of the $1.7 billion financing, boosting Uganda’s electricity generation capacity to over 2,000 MW.
China’s Sinohydro Corporation built the Karuma plant on the Nile River, strategically placed to serve Uganda’s domestic power needs and export electricity to Rwanda, Tanzania, and Kenya. The project aligns with Uganda’s goal to become a leading energy supplier in East Africa while maintaining competitive electricity prices.
Uganda is constructing a 248-kilometer, 400-kilovolt transmission line to support Karuma’s output and export the generated power. The government also plans to build a $180 million transmission line to South Sudan to diversify its income sources and enhance regional electrification.
China has also supported Uganda’s energy infrastructure by financing the 188 MW Isimba Hydropower Plant, completed in 2019 with $500 million from China International Water and Electric Corporation. These projects underscore Uganda’s growing reliance on Chinese loans for large-scale infrastructure.
Despite logistical issues and COVID-19 delays, Uganda has pushed forward with Karuma, initially scheduled for completion in 2018. The government remains committed to strengthening its energy network, improving access to affordable electricity, and fueling economic growth.
President Yoweri Museveni has emphasised the role of low-cost energy in driving Uganda’s industrialisation. Cheaper electricity is crucial for the nation’s growing manufacturing and mining sectors. Expanding the energy grid will help attract foreign investment and support economic development.
Uganda also invests in high-voltage transmission lines to reduce electricity losses, a long-standing issue affecting power plant profitability. The government aims to enhance the efficiency of the national grid and meet rising regional electricity demand.
However, challenges include maintaining infrastructure and managing debt with Chinese creditors. Uganda’s long-term success in energy development will depend on stable electricity markets across East Africa to ensure a return on investment.
Uganda is a critical player in Africa’s growing electricity market because of its increasing energy capacity. The country expects to attract investments in mining, services, and other vital sectors, further advancing its economic goals.
Uganda’s improved generation and transmission capacity enables it to play a pivotal role in East Africa’s electrification efforts while cementing its position as a regional energy hub.