By Denis Jjuuko
On 31 March this year, something that doesn’t usually take place in Uganda happened. A contract between the government of Uganda and private electricity distributor, Umeme, ended as stipulated in their agreement signed more than 20 years ago. Usually, there is an extension after an extension to review something or enable to finalize the transition or something similar.
Even more strange, Umeme acknowledged in a statement published in newspapers that it had received USD118,385,603 as the buy out amount recommended by the Office of the Auditor General (OAG). Usually, payments from the government of Uganda take months and months, lobbying, threats to sue and even sometimes suing. Not this time.
The speed at which government has worked is akin to a spouse eager to divorce their partner so that they can enjoy the warmth of their new lover. If this lightning speed is extended to all contracts and services, Uganda would surely be a better place.
Although Umeme claims that its figure is USD234m and not the figure recommended by OAG, by the time of writing this, I hadn’t heard of anyone struggling to pay for Yaka or postpaid services. Nobody claimed had been switched off from electricity. Was this a case of both partners so eager to see the back of each other and willing to first each grab what they can and agree on some marital property later? Perhaps so. In fact, Umeme indicated that it would go for arbitration somewhere in London. At least, both former lovers were not punching each other and making life difficult for each other. Arbitration is always better than physical fights.
The exist of Umeme ushers into almost uncharted waters for the Uganda Electricity Distribution Company Limited (UEDCL). Although UEDCL has managed distribution in some areas where Umeme didn’t have presence, the scale at which they have to now operate is huge. One can only wish them the best.
They aren’t particularly unique in this though. They can learn from the guys who issue driving permits. They took over from an efficient company and even became more efficient.
As one of the final acts from its divorce, Umeme decided to leave by showing how much they loved their erstwhile partner and spared no coins in paying for a colorful centerspread infographic in the newspapers that showed their impact. One of their key celebratory figures was that they inherited a paltry 250,000 customers and are now handing over a base of 2.37 million customers. This is akin to a partner telling the other in a divorce case that I made you better.
The 2.37 million figure made me sit up, lean back a bit in my chair, grab a mug of Ugandan coffee, sip and stare at particularly nothing. I wondered whether to celebrate or cry. We are a country of 49.5 million people according to the chaps at the Uganda Bureau of Statistics (UBOS) as per the 2024 National Population Census.
Also, there are 10.8 million households in Uganda. On average, Uganda’s household size is 4.4 people. And since the 2.37m customers included factories, offices and buildings, it means that the majority of households in Uganda have no access to electricity.
I know that some households are connected to solar power especially in rural areas but usually that is for charging a feature phone, watch some TV on a screen of the size of tablet computer and some basic lighting. Good but not good enough.
And that is where UEDCL and the government of Uganda need to work. How do they make electricity accessible and affordable to all? Electricity, not just for households, leads to development and job creation. When a small town is connected to the national grid, many young people are able to set up small businesses some of which grow into large enterprises over the years.
It is not uncommon to find a village where there are powerlines but the people too poor to connect their houses. Transforming agriculture would lead the majority of the folks in rural areas to afford installation and service fees as well as buying Yaka units.
The UEDCL will have to be more efficient so that power is reliable and doesn’t go off whenever it rains or every time a bird plays on the wires. They will need to invest significantly in the network, modernize it to reduce losses, and nip corruption in the bud so that there is more money to generate, transmit and distribute.
The writer is a communication and visibility consultant. djjuuko@gmail.com