Business 28 August 2026 Nile Post
Frequent Power Outages Cripple Production at Mbale Industrial Park
Investors at the Sino-Uganda Mbale Industrial Park are facing significant financial losses and damaged machinery due to persistent power outages and voltage fluctuations, threatening the park's production capabilities. Source: https://nilepost.co.ug/news/367355/power-outages-threaten-production-at-mbale-industrial-park
The Sino-Uganda Mbale Industrial Park, a key manufacturing hub in Uganda, is grappling with severe production disruptions caused by unreliable electricity. Investors report an average of 10 to 15 unplanned power outages per month, alongside damaging voltage fluctuations. These issues are leading to damaged equipment, halted production lines, and substantial financial losses, with one company, Uni Steel, reportedly losing approximately $108,000 in a single day due to a power surge.
Park administrators have repeatedly raised these concerns with relevant authorities, including the Uganda Electricity Transmission Company Limited (UETCL), Uganda Electricity Distribution Company Limited (UEDCL), and the Ministry of Energy and Mineral Development. While the government has permitted the park to use a mobile substation, investors are awaiting the construction of a permanent 240-megawatt substation, a project that has seen no progress since its contract was awarded in 2019.
During a recent visit by Minister of State for Investment and Privatisation Amina Mukalazi, investors highlighted electricity as a major impediment to their operations. The Minister acknowledged the challenges and pledged government action, including the fast-tracking of a STATCOM system to stabilize voltage and improve power quality. She also indicated that efforts are underway to finalize the construction of the much-needed substation.
Beyond power issues, investors also voiced concerns regarding road infrastructure, environmental regulations, fire safety, waste management, security, and healthcare access. Minister Mukalazi assured investors that the government, in collaboration with the Uganda Investment Authority and other agencies, would address these “bottlenecks” to foster a more conducive business environment. The Minister also committed to supporting locally manufactured goods, particularly in the textile sector, to enhance their competitiveness against imports.
Source: Nile Post