Umeme Breaks Records with Over 100,000 New Connections – What’s Driving the Surge?

Umeme Limited, Uganda’s leading electricity distribution company, has achieved a significant milestone by recording the highest number of new connections in its nearly two-decade history in the country. As of May this year, Umeme facilitated 107,757 new connections, marking a remarkable 67% increase from the 64,552 connections made during the same period in 2023. This surge in connections underscores the company’s pivotal role in expanding access to electricity across Uganda.

Peter Kaujju, Umeme’s head of communications, attributed this unprecedented growth to the implementation of the Electricity Access Scale-up Project (EASP). Launched under the auspices of the Ministry of Energy and Mineral Development and supported by a $638 million World Bank funding, EASP aims to enhance electricity access for rural households, commercial entities, and public institutions through both on-grid and off-grid solutions over the next five years.

The initiative has garnered positive responses since its inception earlier this year, according to Eng. Abdon Atwine, the rural electrification commissioner at the energy ministry. He highlighted that utility companies collectively achieve over 1,000 new connections daily, illustrating the program’s efficacy in meeting its electrification objectives.

Hybrid Electricity Connection Financing Framework

In response to widespread concerns over high connection costs hindering access to electricity, the Ugandan government introduced the hybrid electricity customer connection financing framework at the end of 2022. This framework subsidizes connection fees, particularly benefiting consumers in close proximity to the electricity grid. For instance, consumers requiring a no-pole connection only need to make a down payment of Sh200,000 out of the total Sh720,883 fee, with the remainder subsidized by the Uganda Development Bank and the government.

Umeme’s Future Outlook

Looking ahead, Umeme aims to achieve up to 257,000 new connections by the end of this year as it prepares to exit Uganda’s electricity supply industry in March next year. This ambitious target underscores Umeme’s commitment to furthering Uganda’s electrification efforts and ensuring more communities and businesses benefit from reliable electricity access.