The Ministry of Energy and Mineral Development (MEMD) has reaffirmed the government's readiness to take over the electricity distribution concession from Umeme Ltd. This transition, set to begin on April 1, 2025, will be managed by the Uganda Electricity Distribution Company Limited (UEDCL).
To support the transition, the Ministry of Finance, Planning, and Economic Development is in the final stages of securing US$50 million through internal borrowing. These funds will ensure UEDCL is financially equipped to improve the quality of electricity services by the end of next week, the ministry said in a March 19 statement.
Approval of the buy-out amount, which will cover capital investments made by UMEME, is in progress in Parliament, according to the statement. This move is part of the government's commitment to ensuring a smooth transition while honouring all contractual obligations.
On staffing, the Ministry has said that UEDCL's restructuring aims to improve efficiency, reduce role duplication, and ensure cost-effectiveness in electricity distribution. "The recruitment process for new staff has been transparent, fair, and merit-based, ensuring that qualified personnel are retained and operational efficiency is prioritised," reads the statement.
The Ministry also acknowledged the current power reliability challenges, and noted that UMEME has been instructed to continue meeting its contractual obligations until the end of March 2025.
