UEDCL Secures $50m from Absa to strengthen Electricity Distribution

Absa Bank Uganda and Uganda Electricity Distribution Company Limited (UEDCL) have announced the advancement of a five-year USD 50million, landmark financing facility to strengthen national power distribution.

This transaction marks a defining moment for Uganda’s energy sector, and the facility is UEDCL’s inaugural debt financing. The facility will enable UEDCL to expand its distribution footprint to over 200,000 additional customers by 2026, thereby directly improving electricity access, reliability, and affordability nationwide.

This will also support network upgrades and reinforcement to improve electricity reliability.

The Managing Director, Absa Bank Uganda, said: “Reliable power distribution is foundational to Uganda’s industrialisation, competitiveness, and inclusive growth. 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.

By partnering with UEDCL at this critical investment phase, we are supporting a more resilient, efficient, and future-ready power distribution network aligned to Uganda’s Vision 2040 and National Development Plan IV.”

Paul Mwesigwa, UEDCL’s Managing Director, said: “With this financing from Absa Bank Uganda, UEDCL will be able to significantly improve the country’s distribution network.

This investment will enhance the reliability and efficiency of power supply system, hence cementing our role in supporting Uganda’s economic growth.”

NDP IV, which runs from the Financial Year 2025/26 to 2029/30, includes power and energy targets to support industrialisation. These targets cover scaling electricity generation capacity to 15,420 MW by 2030, improving energy sufficiency, increasing utilization, and promoting sufficient energy.