Uganda to privatise electricity sub-sector

Uganda has said it is preparing to open up transmission of electricity to private investors, with officials saying the sector needs billions of dollars in fresh capital.

Growth in transmission infrastructure has fallen behind generation and distribution, which have attracted substantial investment, especially from China, after the government partially privatised them in the 2000s.

An internal March 2020 report by the Electricity Regulatory Authority (ERA) seen by Reuters shows the country’s power transmission sector needs at least $2.5 billion (Sh266 billion) fresh investment over the next seven years.

The report said if the sector is not opened up to private investment there is a risk that power plants under development may be completed and start producing power before required transmission lines are in place.

“The government is exploring the possibility of opening up electricity transmission to private investment,” ERA spokesman Julius Wandera said.