Uganda: UEDCL Seeks $50 Million Loan From Absa Bank To Expand Distribution Network

The Uganda Electricity Distribution Company Limited (UEDCL) has signed a loan agreement with Absa Bank Uganda, securing a five-year $50 million facility to finance projects aimed at strengthening the country’s power distribution network.

The facility will enable UEDCL to expand its distribution footprint to more than 200,000 additional customers by 2026, directly improving electricity access, reliability, and affordability nationwide.

It will also support network upgrades and reinforcements to enhance system reliability and reduce technical losses, grid extensions to connect new households, the rollout of digital metering, and the integration of renewable and distributed generation.

Speaking at the signing ceremony, Managing Director of Absa Bank Uganda, David Wandera, 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 with Uganda’s Vision 2040 and National Development Plan IV,” Wandera said.

UEDCL Managing Director, Paul Mwesigwa, noted that the financing would significantly improve the country’s electricity distribution system.

“This investment will enhance the reliability and efficiency of the power supply system, thereby reinforcing our role in supporting Uganda’s economic growth. We appreciate Absa Bank Uganda, as well as our shareholders—Hon. Dr. Canon Ruth Nankabirwa and Hon. Matia Kasaija—for granting UEDCL a no-objection to this loan, and we look forward to delivering projects aimed at enhancing the distribution network,” Mwesigwa said.

National Development Plan IV (NDP IV), which runs from the 2025/26 to 2029/30 financial years, prioritises power and energy investments to support industrialisation. Key targets include scaling electricity generation capacity to 15,420 MW by 2030, improving energy sufficiency, increasing utilisation, and promoting efficiency across the sector.

Reaffirming Absa’s commitment, Wandera said: “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.”