Energy sector must attract more private investment to drive $500 billion economy, says Okaasai

What the report says

Nile Post reported that State Minister for Energy Okaasai Sidronius Opolot has urged deeper cooperation between government and private investors to strengthen Uganda’s energy sector, saying dependable and affordable electricity will be crucial to the country’s goal of building a $500 billion economy by 2040. He made the remarks at the opening of the Energy Convention 2026, where officials, investors, development partners and energy specialists discussed power sector reforms and industrial growth.

According to the report, Okaasai linked energy investment to Uganda’s wider transformation agenda, including industrialisation, manufacturing, value addition, mineral processing and employment. He called for collaboration to expand access to electricity, reduce tariffs and promote clean energy options. Eng. Irene Bateebe, the Permanent Secretary in the Ministry of Energy and Mineral Development, said the focus should be on how quickly, fairly and sustainably the sector can transform.

The article also highlighted persistent bottlenecks in transmission and distribution. Brian Isabirye, the ministry’s Commissioner for Renewable Energy, said Uganda had expanded generation capacity, but weak distribution networks were preventing full use of available power. He cited estimated transmission and distribution losses of about 1,472 gigawatt-hours in 2025, costing the sector between Shs 221 billion and Shs 394 billion annually.

Nile Post reported that officials identified ageing infrastructure, vandalism, overloaded feeders, delayed connections and underused generation capacity as major constraints. Peak demand reportedly rose from 986 megawatts in August 2025 to 1,188 megawatts in February 2026. Stakeholders said modernising distribution infrastructure and attracting private capital would be important for improving reliability, supporting new connections and enabling long-term economic growth.