Kampala – Uganda is using oil revenues to expand electricity access and accelerate its renewable energy transition, according to Humphrey Asiimwe, Chief Executive of the Uganda Chamber of Energy and Minerals.
In a written perspective on Africa’s evolving energy landscape, Asiimwe says Uganda has reached 2,052.6 megawatts of installed electricity capacity following the full commissioning of the 600 megawatt Karuma Hydro Power Plant. Despite this surplus, only about 28 percent of Ugandans are connected to the national grid, pointing to the scale of energy poverty that remains.
The East African Crude Oil Pipeline is 79 percent complete, with the first shipment of crude from the Tanga Marine Terminal scheduled for October 2026. Asiimwe writes that the Ugandan government plans to channel oil and gas revenues into the national Energy Transition Plan, which targets carbon neutrality by 2050. “This is not a retreat into fossil fuels; it is a strategic bridge,” he said.
Rural electricity access stands at 9.1 percent. Asiimwe explains that the biggest obstacle is the upfront cost of connection, including inspection fees averaging US $11.23 and wiring costs that can exceed a household’s monthly income, particularly when about 60 percent of Ugandans earn roughly US $50 a month.
He points to reforms introduced in April 2025, when the Umeme concession ended and electricity distribution returned to the state-owned Uganda Electricity Distribution Company Limited. Within the first six months, 648,404 new connections were added and system losses fell from 19.1 percent to 16.8 percent, which Asiimwe attributes to a focus on service delivery over profit.
Asiimwe also discusses the role of regional power integration through platforms such as the Southern African Power Pool, the Eastern Africa Power Pool and the Zambia Tanzania Kenya interconnector, allowing surplus electricity to be traded across borders and reducing risks for large infrastructure projects.
On investment trends, he notes that spending on electric vehicles in Africa reached nearly US $70 million in 2023, an eightfold increase in two years. He also references the European Union’s Global Gateway initiative, which has pledged €150 billion for sustainable infrastructure in Africa, with a target of adding 50 gigawatts of renewable capacity by 2030.
Asiimwe writes that Africa is increasingly using hydrocarbons responsibly to finance renewable energy development while moving away from outdated power systems. Quoting Damilola Ogunbiyi, Chief Executive of Sustainable Energy for All, he says: “The transition is for and about people.”
Mr Humphrey Asiimwe is among the confirmed speakers at the Africa Energy Indaba 2026, Africa’s premier energy conference and exhibition, scheduled to take place from March 3 to 5 in Cape Town, bringing together policymakers, investors and innovators shaping the continent’s sustainable energy future.
Discussion about this post