By Segun Adeyanju
The European Union has pledged €30 million (about $32.7 million), to rehabilitate Uganda’s Nalubaale-Kiira hydropower complex, in a move aimed at strengthening the country’s energy infrastructure and supporting long-term economic growth.
The funding, announced in Kampala during celebrations marking 50 years of EU-Uganda relations, is expected to unlock additional financing from the European Investment Bank and other development partners. Construction is scheduled to begin after the project’s first phase in 2026.
EU Head of Delegation to Uganda, Jan Sadek, described the grant as part of the bloc’s broader Global Gateway strategy, which prioritises energy, connectivity, climate resilience, and sustainable private sector investment across partner countries.
He noted that over the past five decades, the EU has channelled more than €5 billion into development cooperation in Uganda, alongside comparable volumes of European private investment.
According to him, the blend of public funding and private capital has supported job creation, service delivery, and economic resilience.
The rehabilitation of the Nalubaale-Kiira hydropower complex is expected to improve electricity generation reliability at one of Uganda’s most critical power facilities, while catalysing further investment in the energy sector.
Beyond energy, the EU has financed major infrastructure projects such as the Kampala Northern Bypass and the Mbarara-Katuna corridor, and continues to support health, education, conservation, and forest restoration initiatives under the EU-Uganda Forest Partnership.
Trade remains a central pillar of the relationship. Uganda benefits from duty-free and quota-free access to the European market under the Everything But Arms arrangement. Since 2019, Ugandan exports to the EU, particularly coffee, have nearly tripled from about €500 million to €1.5 billion.
The latest investment underscores Europe’s commitment to deepening economic ties with East Africa while positioning Uganda’s power sector for sustainable, long-term growth.
