Uganda government is to buy Umeme Assets as Power Distribution Company Umeme exits Uganda market in 2025 this website has learnt.
Umeme has received notice from government that their 20-year concession will not be renewed upon expiry.
Umeme has for the last 20 years become a household name and is known for introducing the now popular Yaka prepaid meters.
According to Minister of Energy, Ruth Nankabirwa come the beginning of March 2025, Umeme concession agreement will come to a natural end after 20 years.
Umeme has invested over $600 million in Uganda’s energy sector since inception.
Nankabirwa says government has already started preparing the Uganda Electricity Distribution Company Limited (UEDCL) to assume former’s power distribution responsibilities within the country.
“Government is putting in place structures that will ensure a smooth transition after the concession for the power distributor Umeme, is not extended beyond March 2025,” she said.
The Minister has also set up a Joint Technical Committee (JTC) to supervise and manage the transition process as Umeme exits and hands over to UECDL by 1st April 2025.
The Joint Technical Committee comprises the Ministry of Energy and Mineral Development, Secretary to the Treasury, Attorney General, Uganda Electricity Distribution Company Limited, Uganda Electricity Transmission Company Limited, Privatization Unit, and the Electricity Regulatory Authority (ERA) The same committee successfully handled the exit of the South African company ESKOM Uganda Limited which used to the Nalubale and Kiira dams in Jinja.
“All efforts are being made to support the Uganda Electricity Distribution Company Ltd to get ready to take over the operations of the Umeme network come 1st April 2025,” Nankabirwa said.
By the end of 2022, Umeme had 2300 full-time employees excluding those working on a contractual basis. It had about 800 workers on contract.
Umeme is listed on the Uganda Securities Exchange and is cross-listed on the Nairobi Securities Exchange.
Energy Ministry Permanent Secretary, Irene Bateebe Irene Bateebe says government could pay up to $ 215 million to acquire a majority share of Umeme as power distributor exits Uganda market.
She said the arrangement they have with Umeme is for it to recover the investments so that assets are taken over by the government or Uganda Electricity Distribution Company Limited which is a government entity.
As of the end of 2023, 35% of Umeme was owned by Ugandans. 1.5 % of the 35% is owned by Ugandan members of staff of Umeme.
Umeme has been operating and maintaining over 44000 kilometers of 11kV and 33kV, distribution Lines, and about 15000 transformers.
It has been serving about 1.9 million customers compared to about 250000 customers when it entered the concession.
