Uganda Electricity Distribution Company Limited (UEDCL) has contended that recent concerns regarding power outages have been exaggerated, stating that its monitoring systems indicate an outage rate of only approximately 2%.
This assertion comes amidst findings from the latest Business Climate Index (BCI) survey by the Economic Policy Research Centre (EPRC), which reported that 42% of businesses experienced some form of electricity instability between April and June 2025.
During the national dissemination of the BCI survey results recently, UEDCL Executive Director, Mr. Paul Mwesigwa, acknowledged the disparity. He explained that while the stability rate is approximately 98%, the 2% loadshedding has a disproportionately significant impact, translating to about 15 hours of power disruption in a single month.
The timing of these issues coincides with the recent transition of electricity distribution from the private company UMEME to the public agency UEDCL. Umeme’s concessionaire of 20 years as a power distributor in Uganda ended in April 2025.
Mr. Mwesigwa described the inherited infrastructure as “stubborn and yearning for investment.” He noted that since the takeover, UEDCL has replaced 205 transformers and has ordered materials worth Uganda Shillings 300bn, although some of these materials are not delivered until after six months. He projected that “serious stability” would be observed within nine months to one year, but for now, “rationing and planned maintenance” are necessary to minimize impact.
Indeed, the EPRC publication highlights the issue of ageing infrastructure and underinvestment. The poor condition of the electricity distribution network before the transition was because of underinvestment. This has led to challenges in operation using medium voltage lines and an urgent need for transformer replacements.
Read the latest Uganda Business Climate Index report: Uganda’s Business Climate Slightly Improves and Businesses Remain Optimistic
Further, vandalism of electricity infrastructure is a critical and dangerous problem, causing significant issues for the economy. Businesses raised concerns that some industry insiders are also involved in vandalism. The high market value of vandalized products, such as copper, contributes to this issue.
The BCI dissemination panel discussing the outcomes of the April to June 2025 survey at Sheraton on July 31, 2025
Business Confidence on the Rise, Despite Challenges
Presented by Ms. Rehema Kahunde, a Research Analyst at EPRC, the BCI findings indicated a slight improvement in business confidence, with the index rising by 3.7 points to 92.5 in Q2 2025. This increase, however, remains below the neutral threshold of one hundred – a signal that business climate is still below potential. A reading above one hundred shows strong confidence in the business environment. Business leaders attributed the positive sentiment to increased business activity, sales turnover, and profitability, particularly during the Easter season.
The national dissemination was attended by representatives from various sectors, including the Ministry of Trade, UEDCL, and the traders’ association KACITA Uganda.
Mr. Issa Ssekito, the KACITA spokesperson, cautioned that for businesses to benefit from anticipated election-related spending, the political season must be peaceful. He suggested that government efforts should focus on sensitizing security operatives rather than voters to ensure stability.
In his remarks, Dr. Ibrahim Kasirye, Director of Research at EPRC, stated that the BCI and its focus on enterprises are a key feature of the organization’s medium-term objectives. He highlighted the forum as a valuable platform for stakeholders to discuss actionable interventions that can enhance the regional business environment. Dr Kasirye represented EPRC Executive Director Dr Sarah N. Ssewanyana.
In his closing remarks, Dr Joshua Mutambi, the Commissioner for Processing and Marketing at the Ministry of Trade and Cooperatives, applauded EPRC for conducting the survey and for bringing together relevant stakeholders to discuss the outcomes. He said the BCI put an important spotlight on key issues impacting the business community which relevant authorities should work to address.
Some of the participants at the dissemination of the Business Climate Index survey results for April to June 2025.
Featured Photo/EPRC, UEDCL
