Uganda has reached an important milestone in its energy sector by becoming the first country in Africa to achieve financial close for a privately financed Independent Transmission Project. The $50 million Amari Power Transmission project, developed by UK-based Gridworks, is expected to improve the country’s electricity network and set an example for other nations.
The project has now entered the construction stage after key agreements were signed between Gridworks and the Ugandan government. These include an implementation agreement with the Ministry of Energy and Mineral Development and a transmission services agreement with the Uganda Electricity Transmission Company Limited. This move shows a shift from the usual government-funded model to private investment, helping reduce pressure on public finances.
The main aim of the Amari project is to upgrade four major high-voltage substations. These are located in Tororo in the east near the Kenya border, Nkenda in the west, and Mbarara North and South. These substations are important points in the national grid, but they have been facing transmission bottlenecks. Because of this, excess electricity could not be properly delivered to areas where demand is high.
Once upgraded, these substations will improve the flow of electricity across the country. This will lead to better reliability and quality of power, especially for industries. Improved electricity supply is expected to support manufacturing growth and help Uganda move closer to becoming a middle-income country.
The project will also make it easier to add more renewable energy into the grid. Uganda already uses hydropower and is increasing its solar capacity. A stronger transmission system will help connect these energy sources more efficiently. It will also support electricity trade with neighboring countries like Kenya and the Democratic Republic of Congo.
Energy Minister Ruth Nankabirwa called the project a key step in modernizing Uganda’s power system. She also highlighted that the project has helped create a new regulatory framework. This framework is designed to attract more private investors into the energy sector in the future.
Construction of the Amari project is expected to take about two and a half years. During this period, it will generate jobs and economic activity. It is also seen as a model for other African countries that want to improve their electricity systems through private sector participation.
As energy demand continues to grow across Africa, projects like Amari show how private investment can play a major role in building reliable and modern power infrastructure.
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