EU, AFD, and MEMD Supercharge Rural Electrification in Uganda with a New Last Mile Electrification Support Project
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 today 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 State for Energy, Honourable Sidronius Okaasai Opolot, 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.
The Honourable Minister of State for Energy, Hon. Sidronius Okaasai Opolot: “The Government of Uganda through the MEMD received finacing totaling to Eur 51.2m in 2015 (Eur 42.9m loan AfD and Eur 8.3m grant from EU-Africa Infrastructure Trust Fund) for grid extension to 87 districts and implementation of Last Mile connections respectively under phase-1. As a result, 74 distribution transformers were installed and a total of 44,977 connections across a combined 4364 Kms of High voltage and Low voltage powerline. The past project (Phase-1), funded through collaborations with AfD /EU-AITF and our own government’s investments, have laid a foundation that today’s agreement for Phase-2 builds upon.
I am therefore pleased to announce that Government has again secured total financing of Eur 60m (Eur 50m loan from AfD and Eur 10m grant from EU ) for the implementation of the Last Mile Electrification Support Project (phase-2). Subsequently , today the 18th March 2025 together with Mpigi DLG, we have witnessed the contribution agreement signing between EU and AFD for a new project (phase-2) that will help fill in the missing electrification gaps in Uganda. This project aims to extend and densify the national grid and develop off-grid solutions in rural areas and targets to achieve at least 40000 new last mile connections in 34 districts and 2 Lake Victoria Islands (Koome and Bugaya).
These projects are more than just lights; they mean better schools, improved healthcare, and new business possibilities in our communities. Through the Last-Mile Connections, we aiming to reach every household, many businesses, and public institutions, we are showing our commitment to ensuring everyone benefits. Moreso, we need to protect this new infrastructure and promote the productive use of electricity to spur economic development and improve living standards.
Finally, a big thanks to the European Union and the French Development Agency for their financial support towards the electrification of Ugandans.”
The French ambassador to Uganda, H.E. Mr. Xavier Sticker said: “The Last Mile Electrification Project is one of the embodiments of France and Team Europe working alongside Uganda to transition to a more sustainable future for the population. This new project will bring electricity to 200.000 Ugandans (or 40.000 households) in areas currently underserved.”
The EU ambassador to Uganda, H.E. Jan Sadek said: “The EU-Uganda partnership is fuelled by a shared vision for sustainable development and economic growth. The EU, alongside France and other EU Member States as well as European financial institutions in a Team Europe approach have already empowered 1.5 million Ugandans with access to electricity, with another 3 million
people on the horizon by 2027. This project intends to deliver an important contribution to the objective of leaving no one behind”
For AFD Regional Director Jean-François Arnal: “I am delighted that AFD has the opportunity to finance this last mile project in collaboration with the Ministry of Energy, as part of a Team Europe approach with the EU. Together, we are enhancing our efficiency in delivering meaningful impacts that directly benefit rural communities.”
About the partners EU
In the framework of the EU-Uganda partnership, the European Union supports the country to achieve its development objectives and to address key development challenges, such as: promoting sustainable economic growth; skilling and decent jobs; sustainable management of natural resources; climate resilient agriculture; removing gender inequalities; the protection of basic human, social and economic rights to all Ugandans.
In the energy sector, since 2014 the EU has mobilised in the framework of the EU-Uganda partnership about EUR 200 million in grants, with the potential to attract more than EUR 1 billion in the form of investments.
For more information, visit the EU Delegation website: https://www.eeas.europa.eu/delegations/uganda_en?s=127.
AFD
Agence Française de Développement (AFD) helps advance France’s policy on sustainable investment and international solidarity. Through its public sector and NGO financing operations, research and publications (Éditions AFD), sustainable development training programs (AFD Group Campus) and awareness-raising activities in France, AFD finances, supports and drives the transition to a fairer, more resilient world. Alongside our partners, we provide sustainable solutions for—and with—communities. Our teams are working on over 2,700 projects in the field, in over 115 countries, including France’s overseas departments and territories, to support projects for the climate, biodiversity, peace, gender equality and global health. Together with Proparco and Expertise France, AFD supports the commitment of France and the French people to achieve the Sustainable Development Goals (SDGs). Working by your side, toward a world in common.
