As of April 1, 2025, Uganda’s manufacturing sector will enter a new era as the Uganda Electricity Distribution Company Limited (UEDCL) takes over electricity distribution, marking the end of Umeme Limited’s 20-year tenure. For manufacturers, this transition represents more than just a shift in service provider— it signifies a potential turning point in industrial productivity, cost efficiency, and competitiveness. With factories in Kampala, Jinja, Namanve, and beyond depending on a stable power supply to drive production, UEDCL’s role in shaping the sector’s future cannot be overstated.

Powering Industrial Growth: The Electricity Challenge

The Industrial Sector is the backbone of Uganda’s economic transformation, contributing over 26% to GDP and employing thousands in sectors such as agro processing, steel production, textiles, and pharmaceuticals. Yet, the sector has faced unreliable electricity and high tariffs, hindering growth. While Umeme improved access and industrial connections, high costs (over UGX 600/kWh) and frequent outages forced reliance on costly diesel generators, raising production costs and reducing Uganda’s competitiveness in the EAC market.

UEDCL’s Role in the Manufacturing Sector

As UEDCL takes over, its key mandate is to provide stable, affordable, and efficient power distribution to support Uganda’s industrialization and Vision 2040, which aims to increase manufacturing’s GDP contribution to 31%. Unlike profit-driven Umeme, UEDCL’s public ownership allows reinvestment in grid modernization, potentially lowering tariffs and improving reliability.

Manufacturers expect it to resolve outdated infrastructure, inconsistent supply, and slow fault responses. Integration with UETCL and major projects like the 600MW Karuma Hydropower Plant could enhance uninterrupted power for energy-intensive industries.

Tackling Key Challenges: Reliability and Infrastructure

The transition to UEDCL faces challenges as the manufacturing sector has experienced disruptions due to grid failures, vandalism, and poor infrastructure maintenance. Issues like transformer theft, damage to high-voltage transmission lines, and limited capacity in industrial parks have caused significant production losses. To gain manufacturers’ trust, UEDCL must prioritize infrastructure protection, invest in anti-vandalism measures, upgrade transmission lines, and expedite repairs. Implementing smart grid technology with real-time monitoring and predictive maintenance could further improve system reliability and efficiency.

Strategic Collaboration: A Path to Industrial Competitiveness

The transition presents an opportunity for manufacturers to collaborate with UEDCL to create tailored electricity solutions. Through UMA, they can engage in dialogue to influence policies like special industrial tariffs and demand-side management programs, reducing energy costs and optimizing grid use. This collaboration enhances service responsiveness through faster fault resolution and better customer support, helping position Uganda as a regional manufacturing hub.

A Call to Action: Ensuring Power for Industrial Growth

To UEDCL, the manufacturing sector extends a cautious but hopeful welcome. The expectations are clear: prioritize industrial zones, ensure uninterrupted supply, and implement policies that reduce the cost of power for manufacturers. The success of Uganda’s industrial sector is intrinsically linked to energy stability— every kilowatt delivered fuels production, exports, and job creation. As Umeme exits, its contributions to expanding electricity access are acknowledged. However, the focus now shifts to the future. The arrival of UEDCL presents an opportunity to realign the power sector with Uganda’s industrial ambitions. If managed effectively, this transition could be the catalyst for a new manufacturing era—one in which Ugandan industries not only survive but thrive on the foundation of affordable, reliable electricity