By David Mwanje
Three days after a heated debate, Parliament has approved loans totaling over Shs 1.5 trillion to strengthen Uganda’s energy exports, improve domestic power lines, and upgrade key road networks. The decision has drawn both support and concern supporters point to the potential for jobs, better transport, and stable electricity, while critics warn of rising debt and undisclosed agreements.
The biggest of the three loans—US$121.96 million (about Shs 422.7 billion) comes from the African Development Fund. It will finance a 299-kilometer power line from Olwiyo in Uganda to Gumbo in South Sudan. Energy Minister Sidronius Okasai said Uganda currently generates about 2,056 megawatts of electricity but uses only 900, leaving 1,156 megawatts idle. Selling part of this surplus abroad could bring in new revenue and ease local power costs over time.
Dr. Samuel Muhindo, an energy expert at Uganda Martyrs University, said cross-border electricity trade strengthens regional energy security. “Selling unused electricity to others builds interdependence in the East African Community. Uganda could also import power when needed,” he noted. With only 25.3% of households connected to the national grid, proceeds from exports could accelerate rural electrification and support small enterprises.
A second loan of €342.5 million from Standard Chartered Bank will fund the 400KV Karuma–Tororo double circuit power line and a 132/33KV substation in Ntinda. The project aims to improve transmission efficiency and reduce power losses. Lawmakers said the upgrade would ensure reliable electricity supply from the Karuma Hydropower Plant, benefiting factories and urban centers. The plan could also create thousands of jobs and strengthen Uganda’s position as an energy hub in East Africa.
The third loan €230.4 million from Citi Bank targets the construction of 127 kilometers of the Jinja–Mbulamuti–Bukungu Road and 10 kilometers of roads in Jinja City. The new routes will link eastern Uganda to Lake Victoria ports, easing transport for farmers and traders. Improved road access is expected to lower food prices, boost tourism, and enhance cross-border trade with Kenya. More than 5,000 jobs are projected during the construction phase.
Though Uganda’s public debt now stands at about Shs 80 trillion, Parliament’s Finance Committee said the projects are expected to generate returns that will help offset the loans within a decade. Economists argue that better roads and power networks translate to a stronger economy and improved living standards.
However, legislators have urged transparency in all project agreements to ensure accountability. Without full disclosure of memoranda and power purchase deals, they warn, the benefits could bypass ordinary citizens. The true measure of success, they added, will be whether these investments turn borrowed money into real development for Uganda’s 45 million people.
