Energy, Utilities and Mining

The total energy consumption in Uganda is estimated at over five million tonnes of oil equivalent, of which 90% is derived from wood and charcoal. Uganda currently has an installed electricity capacity of 283 MW, which is insufficient to meet the growing demand. There is also considerable unmet demand principally from Kenya, but also from Tanzania and Rwanda. Overall capacity is currently considerably less than installed capacity due to the water level of lakeVictoria being lower than normal. This has resulted in considerable load-shedding. The construction of the 50 MW thermal plant in Kampala is trying to improve the situation albeit with little success. Further thermal plants are planned to meet the shortfall, at least in the period before the Bujagali and Karuma dams can be commissioned.

In a bid to liberalise the sector and increase supply, the government has started discussions with independent power producers. Two major schemes are currently being planned (at Bujagali and Karuma), which when completed, will increase the installed capacity by 470 MW. Some smaller hydro electric schemes, sugar bagasse burning, and thermal schemes are also under construction. The operation of the hydro electric power station has been concessioned to Eskom of South Africa. The distribution of electricity has also been concessioned to Umeme, a joint venture between Globeleq and Eskom.

Uganda has historically had a mining industry based on copper but following the disturbances of the 1970s, copper is no longer commercially mined. However, there is considerable interest in reviving copper mining. The major mining investment at present is Kasese Cobalt Company Limited with French, Canadian and Australian investors. As well as the revival of copper mining, there are reserves of gold, phosphate and oil which have not yet been fully surveyed or exploited.

Uganda's petroleum requirements are currently met through imports via Mombasa or Dar-es-salaam.

Over the last few years, we have been providing financial and tax advice to companies within the energy and mining sector.