AfDB Approves €7.33 Million for Uganda Rural Electrification Project
The African Development Bank Group has approved €7.33 million in additional financing to finalise compensation payments to communities affected by the Uganda Rural Electricity Access Project (UREAP) Phase I.
The funding, approved on 7 April, is aimed at closing a financing gap to ensure that all project-affected persons receive due compensation, while also supporting the completion of outstanding works and environmental and social commitments.
UREAP Phase I, launched in 2015, has significantly expanded electricity access in rural and peri-urban areas across Uganda. The project has facilitated last-mile electricity connections to 137,770 households, benefiting an estimated 670,000 people, including homes, businesses and public institutions.
According to the Bank’s East Africa Regional Manager for Energy, Aleymahu Wubeshet-Zegeye, the additional financing will ensure inclusivity and accountability in the project’s implementation.
“This financing ensures that no community is left behind. It allows us to complete what we started, honour commitments made to affected families and secure lasting development impact,” he said.
In parallel, the Bank has also approved the second phase of the project (UREAP II), with a total investment of €104.39 million. This includes €86.58 million in financing from the African Development Bank, alongside support from the Climate Investment Funds and the Government of Uganda.
UREAP II is expected to deliver approximately 624 kilometres of medium-voltage and 2,154 kilometres of low-voltage electricity distribution networks over six years. The project will generate an estimated 259,723 new grid and mini-grid connections, benefiting over 250,000 households, 3,000 businesses, and key public institutions such as schools and health facilities.
The expanded rollout is projected to provide first-time electricity access to nearly 1.18 million people, while reducing reliance on fossil fuels and traditional biomass.
The initiative forms part of the Bank’s broader Country Strategy Paper for Uganda (2022–2026) and contributes to Mission 300, a joint effort with the World Bank Group to connect 300 million people in Sub-Saharan Africa to electricity by 2030.
