Uganda targets a US$500 billion economy powered by clean, sustainable energy
Kampala/Uganda
In a bold strategic shift, Uganda’s government has unveiled its ambition to build a US$500 billion economy by leveraging clean and sustainable energy as a core engine of transformation. This came during the opening of the Renewable Energy Conference & Expo 2025 (REC25) in Kampala.
The vision & strategy
The government’s “Ten-Fold Growth Strategy” places energy at the heart of industrialisation, job creation and socio-economic transformation. The target is to increase generation capacity to 15,420 MW by 2030 and 52,481 MW by 2040.
Current electricity access stands around 60%, and major transmission projects (e.g., Karuma-Kawanda, Gulu-Kole-Nebbi-Arua, Opuyo-Moroto) are underway.
Key initiatives
Deployment of off-grid and mini-grid solutions to reach remote communities.
The Biofuels Blending Programme and Clean Cooking Strategy to reduce biomass reliance and improve health outcomes.
Encouraging private sector investment in renewable energy and promoting value-addition in exports and industrial goods.
Why it matters
By aligning energy access with industrial growth, Uganda hopes to avoid the “resource curse” trap and ensure inclusive benefits.
Clean energy investments can also mitigate climate risks and widen electrification, particularly in rural areas.
The strategy underpins Uganda’s transition into higher-value sectors instead of primarily commodity exports.
Challenges ahead
Mobilising the required investment (both domestic and foreign) will be massive.
Ensuring infrastructure projects are completed on time and within budget remains a perennial challenge in Uganda.
Demand-side factors — industrialisation, skills, supply chains — must keep pace with energy supply.
Environmental, social and governance (ESG) standards and community engagement will be critical for smooth implementation.
What to watch
Which renewable projects get off the ground in the next 12-24 months and the private-public partnerships involved.
Whether energy access rates improve significantly in underserved regions and off-grid areas.
How Uganda begins to integrate its oil & gas sector, renewable energy ambitions and industrial strategy into a coherent growth path.
