Finance Minister Henry Musasizi says government has allocated Shs2.1 trillion to energy development in 2026/27 as Uganda seeks investment in generation, transmission and renewable energy to support industrialisation.
Uganda is seeking increased European Union (EU) investment in electricity generation, transmission infrastructure and renewable energy as the government targets 20,000 megawatts (MW) of installed generation capacity by 2040 to support industrial expansion and its ambition of building a US$500 billion economy.
Finance Minister Henry Musasizi said stronger Uganda-EU investment partnerships would be critical to mobilising the capital, technology and expertise required to expand electricity supply, improve infrastructure and strengthen business competitiveness.
Musasizi made the remarks while closing the first day of the two-day Uganda-EU Business Forum at Serena Hotel in Kampala. The forum is being held under the theme “Driving Investment, Renewable Energy Partnership and Green Industrialisation under the Global Gateway Strategy.”
“Reliable and adequate electricity supply is critical to implementing our Tenfold Growth Strategy. We welcome European investors to partner with Uganda in developing our energy resources, expanding generation capacity and supporting the industrialisation agenda,” Musasizi said.
The government's Tenfold Growth Strategy prioritises agro-industrialisation, tourism development, mineral development, including oil and gas, and science, technology and innovation.
Achieving the 20,000MW target would require substantial investment in new generation facilities and the transmission infrastructure needed to deliver electricity to industries and other consumers.
Government has allocated Shs2.1 trillion to energy development in the 2026/27 financial year, with planned investments spanning hydropower, solar energy and electricity transmission.
Among the priority projects is the proposed 380MW Kiba Hydropower Project, alongside a 10MW floating solar power plant at Isimba and plans to develop at least 500MW of utility-scale solar projects in the Elgon and Acholi regions.
The government also plans to expand transmission infrastructure to improve electricity delivery to industrial parks and export processing zones, where reliable power is essential for manufacturing, processing and other commercial activities.
The planned expansion presents opportunities for European companies involved in power generation, engineering, construction, equipment manufacturing and technology transfer.
Musasizi also identified geothermal, wind and nuclear energy as areas where European investors could participate through project financing, joint ventures, technology acquisition and technical partnerships.
Uganda has identified 27 geothermal sites with an estimated potential of 1,500MW, offering an opportunity to diversify its energy mix and expand electricity supply as industrial demand grows.
A broader energy portfolio could help meet long-term demand from manufacturing, mineral beneficiation, agro-processing and other energy-intensive industries while creating opportunities across the energy value chain.
Beyond energy, Musasizi called for stronger commercial relations between Uganda and the EU, citing growth in bilateral trade as evidence of the potential to deepen investment and market access.
Uganda's exports to the EU increased from approximately €500 million in 2019 to €1.8 billion in 2025, while the country's total exports of goods and services reached US$18.4 billion in the 2025/26 financial year.
The minister urged European investors to build on these trade links by investing in Ugandan production, processing and manufacturing rather than focusing solely on exporting raw materials.
He encouraged businesses to pursue joint ventures, public-private partnerships and technology transfer arrangements that could expand domestic production, create jobs and increase the value of goods produced for local and international markets.
EU Ambassador to Uganda Jan Sadek reaffirmed the bloc's commitment to mobilising financing and strengthening investment partnerships under its Global Gateway strategy.
“Uganda has significant energy investment potential, but turning that potential into bankable projects requires predictable regulations, appropriate financing mechanisms and strong partnerships between government and the private sector,” Sadek said.
He encouraged businesses, financial institutions and public agencies participating in the forum to use its business matchmaking and deal-making sessions to establish partnerships, identify financing opportunities and advance viable projects towards implementation.
The forum provides a platform for Ugandan and European businesses to identify investment opportunities, strengthen commercial partnerships and mobilise capital for renewable energy development and green industrialisation.
For Uganda, the challenge will be to translate its energy resources and investment commitments into completed projects that deliver reliable electricity, support industrial production and generate sustainable economic growth.