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OPINION
By Peter Mwesiga
Uganda has set an ambitious goal of growing its economy from about $50b in 2023 to $500b by 2040. This will require significant growth in agro-industrialisation, tourism, manufacturing and mineral-based industrial development, alongside science, technology and innovation.
To do this, Uganda will need to significantly expand the size, resilience and diversity of its energy supply, while extending access to more people and businesses. It is within this wider context that Uganda’s Mission 300 National Energy Compact becomes important.
Mission 300 is a World Bank Group and African Development Bank initiative seeking to connect 300 million people in Africa to electricity by 2030. Uganda’s National Energy Compact translates this continental ambition into a national plan that brings together energy targets, policy reforms, investments and institutional arrangements for delivery by 2030.
The compact looks across the entire energy system, aiming at expanding the scale and capacity of electricity generation, transmission and distribution. It targets a bigger and stronger network and faster grid connections, complemented by mini-grids and other off-grid solutions to extend access.
What it means for ordinary citizen
By 2030, the compact targets more than 13 million additional Ugandans gaining access to electricity, increasing access to about 85%. It also aims at extending modern cooking solutions to more than 4.6 million additional households, increasing modern cooking access to about 50%.
Critically, this will require a significant ramp-up in annual new connections, from 400,000 in 2027 to 800,000 by 2030.
For the citizen, this scale of energy expansion could translate into wider economic opportunity. An expanding energy system could create new jobs and businesses while enabling existing ones to grow. Citizens could participate as workers, suppliers of goods and services, consultants, entrepreneurs and consumers of improved energy services.
Beyond the energy sector, more reliable supply could reduce production interruptions and support activities such as irrigation, agro-processing, refrigeration and manufacturing. For households, expanding access to modern cooking solutions could provide health benefits while reducing time spent on cooking activities.
Need for substantial investment
Uganda’s compact estimates about $17.7b (about sh67 trillion) in public and private financing to 2030. The compact will benefit citizens if the required investment is mobilised and infrastructure is delivered to provide affordable, reliable energy that creates productive opportunities for Ugandan businesses and households.
Looking towards 2030 and beyond, it is, perhaps, more interesting to explore the innovations and changes we should expect across the energy ecosystem.
Some signs are already visible. Electric motorcycles are becoming increasingly common on Ugandan roads, while Kiira Motors electric buses are being deployed for mass transport.
Battery-swapping stations are also beginning to appear at dedicated locations and conventional fuel stations.
How quickly will these technologies become mainstream across households and institutions—not only competing with conventional fuel vehicles, but increasingly becoming part of the wider energy ecosystem?
Uganda’s electricity system is already diverse. This scale-up, supported by continued policy development and stronger institutional capacity and coordination, could hasten new business models that better integrate decentralised and grid-connected energy systems.
Could we begin to see Power Purchase Agreements (PPAs) become more mainstream, alongside wider implementation of net metering, grid-scale battery storage and other innovations that strengthen and support electricity services?
Could this also be the period when significantly more private and public buildings begin generating some of their own electricity through corporate PPAs, supported by emerging financing and business models, while maintaining the financial sustainability of the electricity system?
Could this scale of investment also create opportunities for more direct citizen participation? Ethiopia offers an interesting precedent: its 2011 Renaissance Dam Bond mobilised domestic savings towards the country’s landmark energy project.
Beyond institutional investors, could Uganda’s collective savings—from investment clubs to SACCOs—eventually participate in energy investments? In countries such as Germany and Spain, citizen-owned cooperatives have provided one model for collective investment in renewable energy.
Mission 300 could therefore mean much more for the citizen beyond additional energy infrastructure. Its wider significance could lie in how Ugandans work, produce, cook, travel, invest and participate in an increasingly diverse energy economy.
The writer is a managing partner of Xantum Consulting