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Uganda will once once more nationalize its electricity sector. The government announced it on Friday, December 9. He wishes to free himself from his foreign private partners, in order to obtain electricity at a lower cost.
In a statement, the Ugandan Ministry of Energy explains that the objective of its ” reform “of the eastern sector of” provide Ugandans with electricity at affordable rates “. Indeed, the government accuses its foreign private partners – the South African company Eskom and the international consortium Umeme – of charging too high prices.
Scam ?
The president himself, Yoweri Museveni, has repeatedly criticized them, going so far as to accuse them of fraud, in complicity with senior Ugandan officials. Consequently, the government asked the Ministry of Energy not to renew the contracts that linked it to Eskom and Umeme. They expire in 2023 and 2025 respectively.
Until then, Uganda intends to create a new public company: the Uganda National Electricity Company which will manage production and distribution. This reform, according to the press release from the ministry, should “ minimize the excessively expensive share of private capital invested. »
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57% of Ugandans have access to electricity, according to the National Bureau of Statistics, but the distribution service often remains faulty.
