The European Union has committed €30 million, about $32.7 million, to support the rehabilitation of the Nalubaale-Kiira hydropower complex in Uganda, reinforcing efforts to strengthen the country’s energy infrastructure and support economic growth.
Speaking in Kampala during celebrations marking 50 years of EU-Uganda relations, EU Head of Delegation Jan Sadek said the grant is intended to unlock additional financing from the European Investment Bank and other partners.
Construction on the project is expected to begin after the first phase in 2026, according Business Insider Africa.
Sadek said the funding forms part of the bloc’s broader Global Gateway strategy, which focuses on energy, connectivity, climate resilience and private sector development in partner countries.
“Uganda and the EU mark 50 years of cooperation this year, and the bloc will continue to back the country’s transition to middle-income status with serious, sustainable investment,” Sadek said.
Over the past five decades, the EU has provided more than €5 billion, roughly $5.45 billion, in development cooperation to Uganda, alongside a similar level of European private investment.
According to Sadek, these combined public and private funds have supported employment, public services and economic stability.
Don’t Miss This:
Uganda’s Gold Exports Jump 76% To $5.8bn As High Prices Draw New Traders
“That combination matters: public partnership and private enterprise working in the same direction toward opportunity, jobs, and services,” he said.
Infrastructure financing will remain central to the next stage of cooperation. The hydropower upgrade is expected to improve reliability at one of Uganda’s key electricity facilities and encourage further investment in the power sector.
Beyond energy, the EU has funded major road projects such as the Kampala Northern Bypass and the Mbarara-Katuna corridor, while continuing long-term support for health, education and conservation.
Under the EU Uganda Forest Partnership, the bloc is also supporting landscape restoration and green value chains to strengthen climate resilience and rural livelihoods.
Trade has become a strong pillar of the relationship. Uganda benefits from duty-free, quota-free access to the European market under the Everything But Arms arrangement.
Since 2019, Ugandan exports to the EU have nearly tripled, rising from about €500 million ($545 million) to €1.5 billion ($1.64 billion).
Sadek highlighted coffee as a leading export and said European support is increasingly focused on improving quality, certification and climate resilience across Uganda’s agricultural value chains.
The new funding signals Europe’s intention to expand its economic engagement in East Africa while supporting long-term growth in Uganda’s energy sector.
Don’t Miss This:
Uganda Cuts Annual Growth Forecast To 6.5%–7%, To Begin Crude Output In West
Image Credit: The Caspian Post
