In a significant boost to Uganda’s electrification ambitions, the nation has secured a hefty $608 million from the World Bank. This investment aims to support Uganda’s project dedicated to enhancing electricity supply across the country. As reported by the “New Vision” newspaper, citing an official statement from Uganda’s Ministry of Energy, these funds will be allocated for goods, works, and services, including consultancy.
Bloomberg News, in its Thursday coverage, shed light on the multifaceted utility of this funding package. Beyond primary electrification efforts, the fund will be instrumental in expanding credit support to participating financial institutions. This strategy intends to finance endeavors such as home solar energy systems, improved cookstoves, and off-grid connections linked with public institutions.
However, the context of this significant financial support paints a more comprehensive picture of Uganda’s current power landscape. The World Bank has highlighted a staggering figure: approximately 58% of Ugandans still lack access to electricity. This statistic underscores the urgency and importance of the nation’s electrification project.
Worth noting is Uganda’s prior engagement with the World Bank’s affiliate, the International Development Association (IDA). The nation had sought a loan amounting to $331.5 million and grants worth $276.5 million. The recent funding, therefore, aligns with Uganda’s consistent push to harness international backing in its quest to overcome the electricity deficit.
Uganda’s power sector, if adequately funded and executed, can play a transformative role in its economy, potentially attracting more international investors and ensuring a better quality of life for its citizens. With the World Bank’s considerable support, the vision of a fully electrified Uganda moves a step closer to realization, promising brighter prospects for its people and industries.
