energy 28 May 2026 Daily Monitor (Uganda)
Uganda's Energy Security: A Critical Economic Imperative
Despite significant growth in electricity generation, Uganda faces severe power interruptions impacting businesses. Modernizing distribution infrastructure and actively participating in the East African Power Pool are crucial for economic competitiveness. Source: https://www.monitor.co.ug/uganda/oped/commentary/energy-security-is-our-most-urgent-economic-imperative-5476488
Uganda has achieved remarkable growth in electricity generation, more than tripling its capacity over two decades. However, this progress has not translated into reliable power for its citizens and industries, with many experiencing only a few hours of electricity daily. This stark gap between generation and reliable supply is hindering economic potential.
The impact on businesses is profound. A recent survey revealed that power interruptions are the single greatest operating challenge for Ugandan firms, leading to frequent outages and substantial monthly expenses on diesel generators. This diverted capital could otherwise fund job creation, equipment upgrades, and overall business expansion.
While the increase in generation capacity, with projects like Karuma and Isimba, is a positive step, the bottleneck lies in the distribution system. A significant percentage of electricity is lost before it reaches consumers, highlighting the urgent need to modernize the grid rather than solely focusing on increasing generation.
Beyond national borders, East Africa is on the verge of establishing a regional energy market through the Eastern Africa Power Pool (EAPP). With Uganda chairing the EAPP Council of Ministers, the nation is well-positioned to lead this integration. However, current cross-border electricity trading remains minimal, representing a vast untapped potential.
Regional power trading, as seen in Europe and Southern Africa, can reduce costs, enhance reliability, and attract investment. East Africa possesses the necessary resources, institutional frameworks, and political will to achieve this. The key now is swift execution.
Treating energy policy as a core industrial strategy is paramount. Neighboring countries like Rwanda and Kenya have leveraged energy reliability and low-cost power to attract foreign investment and support their industrial sectors. Uganda must follow suit by modernizing its distribution, accelerating regional market participation, and creating regulatory certainty for private investment.
Ultimately, Uganda’s success hinges on matching its generation capabilities with robust distribution and embracing regional energy cooperation. This will unlock industrial competitiveness and secure a more prosperous future.