The European Union has committed €30 million (approximately US$32.7 million) to rehabilitate Uganda’s Nalubaale-Kiira hydropower complex, reinforcing its push to strengthen the country’s energy infrastructure and long-term economic growth.
The funding, announced in Kampala during celebrations marking 50 years of EU–Uganda relations, is expected to unlock additional financing from the European Investment Bank and other development partners. Construction under the upgrade programme is projected to begin after the initial preparatory phase in 2026.
Speaking at the event, EU Head of Delegation Jan Sadek described the grant as part of the bloc’s broader Global Gateway strategy, an initiative aimed at advancing energy security, connectivity, climate resilience, and sustainable private-sector investment across partner countries.
The Nalubaale-Kiira complex is one of Uganda’s most critical power generation assets. Upgrading the facility is expected to enhance electricity reliability, support industrial activity, and reduce pressure on the national grid. Improved generation capacity could also attract further private investment into Uganda’s expanding energy market.
Over the past five decades, the EU has channelled more than €5 billion in development assistance into Uganda, alongside comparable levels of European private-sector investment. According to EU officials, this combined financing approach, blending public grants with private capital, has supported job creation, service delivery, and broader economic resilience.
Infrastructure remains central to the partnership. Beyond energy, EU-backed projects have included major road developments such as the Kampala Northern Bypass and the Mbarara-Katuna corridor. The bloc has also maintained long-term engagement in health, education, conservation, and climate resilience initiatives.
Under the EU–Uganda Forest Partnership, the EU continues to support landscape restoration, green value chains, and sustainable land use practices aimed at strengthening rural livelihoods while addressing environmental challenges.
Trade relations have become an increasingly significant pillar of cooperation. 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, particularly coffee, have nearly tripled, rising from about €500 million to €1.5 billion.
EU officials say support is now expanding toward enhancing product quality, certification standards, and climate-smart agricultural practices to sustain export growth and improve competitiveness.
The latest €30 million pledge underscores Europe’s strategic interest in East Africa’s energy and infrastructure sectors, while positioning Uganda’s hydropower system for long-term stability and growth.
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