Uganda’s energy crisis: Opposition demands urgent reforms for growth

By Tracey Kansiime | Monday, March 24, 2025
Uganda’s energy crisis: Opposition demands urgent reforms for growth

The Opposition has raised concerns over Uganda’s sluggish progress in expanding electricity access, with just 30% of the population connected to the grid and a starkly low 7% access rate in rural areas.

The Shadow Minister of Energy and Mineral Development, Evans Kanyike, highlighted the dire implications of this limited access on productivity and job creation while presenting the 2025/26 Alternative Ministerial Policy for the Energy and Minerals Sector.

Kanyike criticized the government’s over-reliance on hydro energy, which currently supplies over 80% of the nation’s electricity.

He pointed out that this dependence leaves the country vulnerable to seasonal rainfall fluctuations, leading to frequent power outages that disrupt businesses and domestic use.

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“When there’s low rainfall, power shortages become common, affecting both consumers and businesses. Despite Uganda’s vast potential for renewable energy sources like solar and geothermal, the government has failed to implement a robust policy framework to attract investment and scale up these projects,” Kanyike remarked.

The consequences of inadequate electricity access are most evident in rural areas, where the absence of reliable power has stifled small-scale industries and hindered agricultural productivity. With agriculture forming the backbone of Uganda’s economy, Kanyike emphasized that increased electrification could boost agro-processing, enhance storage facilities, and reduce post-harvest losses.

“Access to reliable power could drastically improve productivity and create income-generating opportunities. Yet Uganda’s energy sector remains underdeveloped, with limited access to electricity, particularly in rural areas, where only a small fraction of households is connected,” he said.

Further compounding the challenge are high electricity tariffs.

Uganda has some of the highest rates in the region, deterring industrial growth and making the country less competitive in the East African market.

To address these challenges, Kanyike called for increased investment in rural electrification and the development of alternative renewable energy sources.

Solar, wind, and geothermal energy, he argued, could provide sustainable, affordable power for both urban and rural communities.

“The government must prioritize investments in diverse energy sources. Establishing a clear policy framework and incentivizing private sector participation is key to driving Uganda’s energy sector forward,” Kanyike urged.

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