Uganda Power: Report Q3 2014

Business Monitor International
July 30, 2014
71 Pages - SKU: BMI5305339
Countries covered: Uganda

Uganda Power: Report Q3 2014

BMI View: The outlook for Uganda's power sector is good. The country is investing in both thermal andrenewable energy and generation will double over the next decade. Demand for electricity will also doubleas the economy and population grows, and as investment in the electricity grid gives more people access topower. However, market opportunities are limited by a hazardous investment environment.

The outlook for Uganda's power sector is good. Following an unbundling of the power sector last decadeand a commitment by the government to diversify beyond a traditional dependence on hydropower, thecountry is now developing the capacity to generate both thermal and renewable energy. This will underpin anear doubling in electricity generation over the next decade. At the same time, demand for electricity willalso double as the economy and population grows, and as investment in the electricity grid gives morepeople access to power. However, market opportunities are limited by a hazardous investment environment,characterised by high levels of corruption and political risk, including the risk of sudden withdrawal ofoperating licences, as recently happened with Umeme.



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