Absa Bank Uganda and Uganda Electricity Distribution Company Limited (UEDCL) have today announced the advancement of a five-year USD 50million, landmark financing facility to the electricity distributor to strengthen national power distribution.
This landmark 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.
The facility will support network upgrades and reinforcement to improve electricity reliability and reduce technical losses, grid extensions to connect new households, digital metering, and integration of renewable and distributed generation.
Speaking during the deal announcement, David Wandera, 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, the 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. We appreciate Absa Bank, our shareholders Hon. Dr. Canon Ruth Nankabirwa and the Hon. Matia Kasaija for granting UEDCL a no objection to this loan, and we look forward to delivering all projects aimed at enhancing the distribution network.”
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.
“As a pan-African bank with deep experience in infrastructure and energy financing, Absa is committed to mobilising long-term capital that supports Africa’s development ambitions while maintaining strong risk discipline. This transaction demonstrates what is possible when financial institutions and public utilities work together with a shared focus on impact and sustainability,” said Wandera.
