In a significant step towards universal energy access in Uganda, the European Union (EU), the French Development Agency (AFD), and the Ministry of Energy and Mineral Development (MEMD) have signed a new EUR 10 million-grant agreement (approximately UGX 40 billion) to support a large-scale rural electrification initiative. As the lead financier, AFD is responsible for managing the funds allocated by the EU, and ensuring their effective deployment through MEMD, which will implement the project via its Rural Electrification Department (RuED). This initiative aims to accelerate Uganda’s efforts to provide sustainable, reliable, and affordable electricity to rural and peri-urban communities.

The signing ceremony was held at the Mpigi District Headquarters, in presence of key dignitaries, including the Minister of Energy and Mineral Development, Honourable Ruth Nankabirwa, as well as the Ambassador of France, H.E. Xavier Sticker, and the Ambassador of the European Union to Uganda, H.E. Jan Sadek. Their participation underscored the strong diplomatic and financial commitment of both France and the EU in supporting Uganda’s target to meet universal access to electricity by 2030.

For millions of Ugandans, access to electricity remains a daily challenge impeding economic development, limiting access to essential services and exacerbating social inequalities. This new Last Mile Electrification Project is designed to support bridging this gap by expanding the country’s electricity distribution network and ensuring last-mile connections for thousands of households, businesses and public institutions.

The EUR 10 million grant from the EU empowers AFD, to channel funds to MEMD, to realize 40,000 new household connections and fortify Uganda’s rural electrification framework through strategic capacity-building initiatives. In addition to this grant, AFD is currently appraising a loan of EUR 50 million, part of the overall investment announced by French President Macron in February 2025 in Dar el Salaam to invest EUR 1 billion by 2030 to support African access to electricity. The loan aims to electrify 413 villages across 34 districts. 

The project aims to increase the number of individuals and businesses benefiting from modern, clean, and sustainable energy, nurturing economic resilience and elevating living standards across Uganda’s rural communities. With a target of at least 40,000 connections, reaching approximately 200,000 people, the project places particular emphasis on reducing gender disparities, ensuring women and marginalized groups gain equal access to energy resources, catalysing a social and economic transformation across Uganda’s rural regions.

The new Last Mile Electrification Project is fully aligned with Uganda’s broader electrification objectives. The government, under its Vision 2040, aims to achieve an 80% electrification rate by 2040, recognizing that energy access is fundamental to socio-economic progress. Uganda’s 2023 Energy Policy and National Electrification Strategy (NES) further consolidate these efforts by outlining a roadmap towards 100% energy access by 2030, including both on-grid and off-grid solutions. By supporting these national strategies, the EU, AFD, and MEMD are reaffirming their commitment to helping Uganda reach its electrification targets while promoting sustainable and inclusive economic growth.