In a strategic move aimed to deepen Europe’s economic footprint in East Africa,European Union has pledged $32.7 million, to support the rehabilitation of the Nalubaale-Kiira hydropower complex in Uganda, signalling a renewed push to strengthen the country’s energy infrastructure and economic growth.
Ambassador Jan Sadek described the funding as part of the bloc’s broader Global Gateway strategy, which targets energy, connectivity, climate resilience, and private sector expansion across partner countries.
“Uganda and the EU mark 50 years of cooperation this year, and the bloc will continue to back the country’s transition to middle-income status with serious, sustainable investment,” Sadek said.
“Uganda and the EU mark 50 years of cooperation this year, and the bloc will continue to back the country’s transition to middle-income status with serious, sustainable investment,” Sadek said.
Over the past five decades, the EU has channelled more than €5 billion, roughly $5.45 billion, into development cooperation in Uganda, alongside a similar volume of European private investment. According to Sadek, the combined public and private flows have supported jobs, services, and economic resilience.
“That combination matters: public partnership and private enterprise working in the same direction toward opportunity, jobs, and services,” he noted.
Beyond energy, the EU has previously financed major road links, including the Kampala Northern Bypass and the Mbarara Katuna corridor, while maintaining long-term support for health, education, and conservation programmes. Under the EU Uganda Forest Partnership, the bloc is also backing landscape restoration and green value chains to support climate resilience and rural livelihoods.
Trade has emerged as a particularly strong pillar of the relationship. Uganda benefits from duty-free, quota-free access to the European market under the Everything But Arms arrangement. Since 2019, Ugandan exports to the EU have nearly tripled, from about €500 million ($545 million) to €1.5 billion ($1.64 billion).
Uganda’s energy sector is undergoing rapid transformation, moving from heavy reliance on biomass (approx. 88-94% of total energy) toward a modern, renewable-focused grid. With an installed capacity exceeding 2,000 MW as of 2025, primarily driven by hydro-power along the Nile, the government is expanding electricity access through initiatives like the Electricity Connection Policy
In 2025, Uganda’s energy sector is defined by a surplus in generation capacity exceeding 2,000 MW, driven by major projects like Karuma Hydro-power, alongside a strong shift towards renewable energy and oil infrastructure development. The focus is shifting to increasing access and transmission, while integrating 2025–2030 strategic plans for clean energy adoption