Uganda Targets $17.7 Billion in Energy Investment Under New National Compact

November 2, 2026 | By Semahegn Nigatu

Uganda is seeking to mobilise 17.7 billion US dollars in energy investments by 2030, including 9.4 billion US dollars in private capital, under a national energy compact launched with the African Development Bank Group as the country seeks to expand electricity access and strengthen its position in regional power markets.

The compact sets a target of raising electricity access to 85 percent and clean cooking access to 50 percent by 2030. It also envisages 2,500 megawatts of operational electricity generation capacity, alongside a further 5,800 megawatts of projects expected to reach financial close by the end of the decade for commissioning after 2030.

The targets form part of Uganda's contribution to Mission 300, a joint initiative of the African Development Bank Group and World Bank Group to connect 300 million additional people across Africa to electricity by 2030.

The government also plans to develop 2,712 mini-grids and increase regional electricity exports to between 500 and 650 megawatts by 2030, positioning the country to play a larger role in cross-border power trade.

The compact was formally launched by Prime Minister Robinah Nabbanja on October 22, 2026, during the 11th Africa Energy Market Place in Kampala. The two-day meeting, held at Kampala Serena Hotel, brought together government officials, utilities, regulators, development partners and private investors to agree on projects, financing priorities and policy reforms required to implement the targets.

Participants agreed on two categories of priority projects: those expected to become operational by the end of 2030 and those that should reach financial close within the same period. They also produced a Uganda Energy Access Investment Brief aligned with Mission 300 and outlined regulatory and policy reforms with implementation timelines.

A Compact Delivery and Monitoring Unit will be established within the Ministry of Energy and Mineral Development to coordinate implementation and track progress. Its first semi-annual progress report is scheduled for December 2026.

Nabbanja urged private investors to participate in the country's energy expansion, arguing that reliable electricity would create opportunities across productive sectors, including agriculture. "The value of energy investments is seen in the opportunities it creates for our people — reliable electricity that makes irrigation, processing and cold storage possible for a farmer," she said.

Energy and Mineral Development Minister Monica Masanza described the compact as a framework for translating Uganda's energy ambitions into projects with defined timelines, financing and institutional responsibilities. "Uganda has never lacked ambition," she said. "This compact adds a delivery plan with dates, owners and financing behind it."

Kevin Kariuki, the African Development Bank Group's vice-president for power, energy, climate and green growth, said Uganda's renewable energy potential and planned sector reforms could strengthen its position in the East African Power Pool. He pointed to opportunities for independent transmission projects and the country's potential to expand regional electricity trade.

Wale Shonibare, the Bank Group's director for energy financial solutions, policy and regulation, said the Africa Energy Market Place was designed to create conditions for private investment through regulatory reforms, financing instruments and institutional clarity.

The Uganda Energy Compact was first presented at the Africa Energy Forum in June 2026 as part of the third cohort of countries participating in Mission 300. The Kampala meeting marked the first formal consultation focused on its implementation.

Source: FSX Business News