KAMPALA, January 23, 2026 — More than 200,000 households and businesses across Uganda are set to gain access to electricity following the recent signing of a landmark financing agreement between Absa Bank Uganda and the Uganda Electricity Distribution Company Limited [UEDCL].
Under the deal, Absa has extended a five-year financing facility worth US$ 50 million [approximately Shs175 billion] to UEDCL to accelerate electricity distribution and strengthen the country’s power network. The facility marks UEDCL’s first-ever debt financing and represents a major milestone in Uganda’s efforts to expand reliable and inclusive access to electricity.
The funding will enable UEDCL to connect the new customers by 2026, while also improving network reliability through targeted infrastructure upgrades. Key interventions will include reducing technical losses, expanding the electricity grid into underserved and rural communities, and rolling out digital metering systems to enhance efficiency and accountability.
In addition, part of the financing will support the integration of renewable and distributed energy solutions, positioning Uganda’s power sector to meet future demand while remaining resilient and sustainable.
The announcement was made in Kampala during an event led by Absa Bank Uganda Managing Director David Wandera and UEDCL Managing Director Paul Mwesigwa. Both leaders reaffirmed their institutions’ shared commitment to strengthening Uganda’s power sector as a foundation for long-term national development.
“This partnership reflects our belief that access to reliable electricity is a catalyst for inclusion, productivity, and economic transformation,” Wandera said, noting that sustainable infrastructure is critical to unlocking human potential. “When communities are powered, possibilities follow.”
Mwesigwa described the financing as a transformative step for UEDCL, enabling the utility to scale up connections and modernise the distribution network in line with national development priorities.
The Absa–UEDCL partnership directly supports Uganda’s Vision 2040 and the National Development Plan [NDP] IV, which identify energy as a cornerstone for inclusive growth, job creation, and sustainable industrialisation.
As Uganda continues to pursue universal access to electricity, the deal is expected to play a significant role in bridging energy gaps, stimulating economic activity, and improving livelihoods across the country.
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