KAMPALA, Uganda — Absa Bank Uganda announced a five-year, $50 million debt financing facility for the Uganda Electricity Distribution Company Limited, or UEDCL, Monday, marking the utility’s first commercial debt transaction and a major step in the national effort to expand power access.
The facility is intended to reinforce and upgrade Uganda’s power distribution network, which is expected to reduce technical losses and improve electricity reliability and affordability nationwide. UEDCL projects the investment will connect more than 200,000 new customers by 2026.
This financing comes after the state-owned UEDCL officially took over the country’s electricity distribution assets in April 2025, after the 20-year concession with Umeme ended.
David Wandera, managing director of Absa Bank Uganda, emphasized the loan’s role in supporting national development goals.
“Reliable power distribution is foundational to Uganda’s industrialization, competitiveness, and inclusive growth,” Wandera said. “This facility reflects Absa Bank Uganda’s long-term commitment to financing infrastructure that unlocks productivity and improves the quality of life for communities across the country.”
The funds will support grid extensions, digital metering, and the integration of renewable and distributed generation, aligning with Uganda’s Vision 2040 and the fourth National Development Plan, which runs through 2029-30.
Paul Mwesigwa, UEDCL’s managing director, said the financing will allow the company to significantly improve the country’s distribution network.
“This investment will enhance the reliability and efficiency of the power supply system, hence cementing our role in supporting Uganda’s economic growth,” Mwesigwa said.
The loan agreement was signed following approvals from the Ministries of Energy and Finance. Mwesigwa noted that the financing was secured at a competitive rate of less than 8 percent gross of tax, a significant reduction compared to previous financing costs.
Wandera noted that the transaction demonstrates a successful model for collaboration between financial institutions and public utilities to achieve developmental impact.
