Uganda Electricity Distribution Company Limited (UEDCL) has secured it’s first-ever debt financing facility, marking a major milestone in the expansion and strengthening of the country’s power distribution network.
This development was announced on 15th December, 2025 following the signing of a USD 50 million, five-year financing facility between UEDCL and Absa Bank Uganda, aimed at accelerating electricity access nationwide.
The facility will enable the connection of over 200,000 new customers by 2026, while improving network reliability through targeted upgrades and grid expansion into underserved communities.
Speaking at the announcement, David Wandera, FCCA, Managing Director of Absa Bank Uganda, said reliable electricity remains central to Uganda’s economic transformation.
“Reliable power distribution is fundamental to Uganda’s industrialization, competitiveness, and inclusive growth,” Wandera said.
“This facility reflects our long-term commitment to financing infrastructure that unlocks productivity and improves the quality of life for communities across the country,” he added.
UEDCL Managing Director, Paul Mwesigwa, noted that the financing will strengthen the utility’s capacity to deliver affordable and reliable electricity.
“This investment will improve the reliability and efficiency of the electricity supply system, cementing our role in supporting Uganda’s economic growth, Mwesigwa stated.
“The funding will support network upgrades, new substations, digital metering, and initiatives to reduce technical losses,” he added.
The facility will also back smart grid initiatives, support the integration of renewable and distributed energy solutions, and expand electricity infrastructure into hard-to-reach areas, strengthening Uganda’s power system to meet future demand while improving service delivery across the country.
This Absa–UEDCL partnership aligns with Uganda’s Vision 2040 and National Development Plan (NDP) IV, strengthening energy as a foundation for inclusive growth, job creation, and sustainable industrialization.
