In a bid to address the growing demand for electricity and upgrade Uganda’s aging power distribution infrastructure, Uganda Electricity Distribution Company Limited (UEDCL) is seeking $130 million in capital investment. The request, which was made to the Electricity Regulatory Authority (ERA), comes as UEDCL steps into its new role, having taken over Umeme’s power distribution concession in Uganda.
Paul Mwesigwa, Executive Director of UEDCL, revealed the company’s investment plans during an interview at a recent public hearing on tariff adjustments. The funds will be allocated to the expansion and modernization of the power distribution network, including building new substations, replacing old transformers and power lines, and procuring materials for new connections.
“Upgrading the infrastructure is crucial for stabilizing power supply across the country. We are confident that this investment will make a significant difference,” Mwesigwa explained. He also highlighted that the company’s daily energy purchases have risen by 9% since taking over, driven by increased demand from new connections and optimization efforts across key substations, including Kakiri, Masaka, and Mbarara.
However, the surge in electricity usage has strained existing infrastructure. Some transformers have broken down, leading to disruptions in service. To address this, UEDCL has placed orders for more than 4,000 new transformers, which will be deployed to villages and used to upgrade equipment across the country.
“We’ve already begun receiving transformers and other essential materials,” Mwesigwa noted, adding that substation construction projects are well underway. UEDCL has secured land for new substations in strategic locations, such as Nakasero and Majije, with further expansions planned in Kumi and other areas.
The long-term plan is for the network to be more stable by January 1, 2026, though Mwesigwa stressed that infrastructure projects of this scale require time. “These are capital-intensive civil works, which can take anywhere from six to 18 months to complete,” he said.
In response to UEDCL’s efforts, Eng. Ziria Tibalwa Waako, CEO of the Electricity Regulatory Authority, reaffirmed the government’s commitment to supporting the electricity sector. She emphasized that while the transition from a private to a public distributor posed initial challenges—particularly with staffing and procurement—the regulatory framework is evolving to facilitate the necessary upgrades.
“We’re working with UEDCL to ensure that they have the resources and materials they need for effective operation and maintenance,” Waako said. She pointed out that government entities, unlike private companies, must follow stringent public procurement regulations, which can slow down processes. However, the government has taken steps to speed up these procedures, including granting procurement waivers to UEDCL for critical projects like transformer replacements.
Waako also assured the public that power supply reliability and service quality will improve as these upgrades take effect. “With the support of the government and private investors, we are confident that the power supply will continue to evolve in terms of quality, reliability, and overall service,” she added.
As of December 2025, UEDCL has secured $68 million of its $74 million funding target for network upgrades. This includes $30 million already committed to purchasing equipment and services, with restoration efforts already underway to address overloaded transformers and power lines. The remaining funds are earmarked for meeting the rising demand from new connections and expanding industrial parks.
While the road ahead remains challenging, both UEDCL and the ERA are optimistic that the planned upgrades will transform Uganda’s power distribution network into a more reliable, efficient, and future-proof system.
