Manufacturers demand electricity sector reliability amidst significant grid expansion and generation boost
Frequent power outages, inconsistent supply, and unpredictable tariffs were cited as major hurdles, complicating operational planning and cost reduction efforts for businesses.
Uganda’s electricity sector stands at a pivotal juncture, grappling with the urgent demands of a burgeoning industrial base while simultaneously demonstrating remarkable progress in expanding access and generation capacity.
Manufacturers, through the Uganda Manufacturers Association (UMA), are stressing the critical need for improved reliability and tariff stability to sustain economic growth, even as utility providers report dramatic increases in customer connections and power output.
At a recent UMA Economic and Business Policy Committee meeting, industry leaders highlighted persistent challenges that continue to impede manufacturing productivity.
Frequent power outages, inconsistent supply, and unpredictable tariffs were cited as major hurdles, complicating operational planning and cost reduction efforts for businesses.
With industrial consumption rising significantly due to Uganda’s expanding manufacturing base, addressing these issues, alongside delays in new connections, has become paramount.
UMA is now driving forward with comprehensive policy briefs and reform proposals aimed at fostering effective Business-to-Government (B2G) dialogues.
The goal is to align ministries, regulators, and utilities towards coherent reforms, emphasizing strong collaborations supported by multi-stakeholder technical working groups to harmonize standards and direct strategic investments across the sector.
“Our clear shared goal is to deepen stakeholder collaboration, resolve supply challenges, and unlock the full potential of Uganda’s industrial and national development,” a UMA representative stated. “These efforts collectively will pave the way for a more reliable, affordable, and sustainable electricity future essential for manufacturing and the broader economy.”
Generation and Distribution See Major Gains
Despite the industrial sector’s concerns, key players in Uganda’s electricity supply chain have reported substantial advancements.
The Uganda Electricity Generation Company Limited (UEGCL) boasts of increased electricity generation, with an existing installed capacity of 1,213 megawatts. The company is on a trajectory to reach 1,317 MW by 2028, underscoring its commitment to advancing generation capacity targets enshrined in the National Development Plan (NDP) III, Vision 2040, and the national energy policy.
UEGCL is also implementing an Operations and Maintenance (O&M) Business Model to ensure operational efficiency and quality assurance and has achieved ISO 9001:2015 certification for its Quality Management System.
Financially, UEGCL reported a strong performance in the financial year 2023/2024, with revenue increasing by 2% to UGX 351 billion and Profit After Tax (PAT) rising by 60% to UGX 54.28 billion, attributed to reduced operating costs and increased revenue.
On the distribution front, the Uganda Electricity Distribution Company Limited (UEDCL) has achieved a dramatic expansion of Uganda’s national electricity grid. Within the first six months of taking over from UMEME, UEDCL connected an impressive 648,404 new customers, pushing the total number of connections to 2,430,489, up from 1,782,085 in April.
UEDCL’s Managing Director, Paul Mwesigwa, highlighted these significant milestones on Tuesday, September 16, 2025, during a weekly meeting at the State House Investors’ Protection Unit (SHIPU). He noted that the number of grid-connected households surged from 1,687,267 to 2,327,898 within the same period, indicating a substantial increase in access to electricity for Ugandan families.
Infrastructure development also saw significant growth under UEDCL’s management, with the national grid length extending from 3,431 km to 5,140 km. Crucially, UEDCL has also made strides in operational efficiency, with energy losses significantly decreasing from 19.1% to a more efficient 16.8%.
Mwesigwa also reported a remarkable increase in total national installed generation capacity, which the grid now supports, from 1,362 megawatts to 2,049 megawatts, further bolstering the country’s energy supply.
While the rapid expansion in generation and distribution capacity is a testament to the government’s commitment to universal access, the calls from the manufacturing sector underscore the ongoing need for these advancements to translate into consistent, affordable, and reliable power at the point of consumption.
The coming months will be critical to see how the proposed collaborations and reforms bridge the gap between impressive sector growth metrics and the daily operational needs of Uganda’s vital industrial engine.
