The European Union has committed €30 million (approximately $32.7 million) to fund the refurbishment of the Nalubaale-Kiira hydropower complex in Uganda, marking a fresh effort to reinforce the nation’s electricity network and support economic expansion.
Addressing an audience in Kampala during events commemorating 50 years of ties between the European Union and Uganda, EU Ambassador Jan Sadek said the €30 million grant is intended to leverage additional funding from the European Investment Bank and other financial partners. Groundbreaking on the hydropower rehabilitation is projected to follow the initial phase in 2026.
Sadek explained that the contribution forms part of the EU’s Global Gateway initiative, which prioritizes investment in energy systems, transport links, climate adaptation, and private-sector development across partner nations.
“As we celebrate five decades of partnership, the EU remains committed to supporting Uganda’s journey toward middle-income status through long-term, sustainable investment,” he said.
Over the past half-century, the bloc has directed more than €5 billion (around $5.45 billion) into development programmes in Uganda, complemented by a comparable level of European private-sector capital. Sadek noted that the blend of public funding and private enterprise has helped generate employment, expand essential services, and strengthen economic stability.
Infrastructure remains a key focus of future cooperation. Upgrading the Nalubaale-Kiira hydropower facility is expected to enhance output reliability at one of the country’s most vital electricity plants and stimulate further investment in the broader energy market.
Beyond power generation, the EU has financed major transport corridors such as the Kampala Northern Bypass and the Mbarara–Katuna road, while continuing support for healthcare, education, and environmental protection. Through the EU–Uganda Forest Partnership, efforts are also underway to restore degraded landscapes and promote green value chains that bolster climate resilience and rural incomes.
Commercial exchange has become another cornerstone of the relationship. Uganda enjoys duty-free and quota-free access to the European market under the Everything But Arms initiative. Since 2019, exports from Uganda to the EU have surged from approximately €500 million ($545 million) to €1.5 billion ($1.64 billion).
Sadek singled out coffee as a leading export product, noting that European assistance increasingly targets quality enhancement, certification standards, and climate adaptation within agricultural supply chains.
The latest financial commitment signals Europe’s determination to expand its economic engagement in East Africa while laying the groundwork for sustained growth in Uganda’s power sector.