African Development Bank Approves €7.33 Million for Uganda Rural Electricity Project to Expand Access and Complete Compensation Payments
The African Development Bank (AfDB) Group has approved an additional €7.33 million in financing to complete compensation payments for communities affected by the Uganda Rural Electricity Access Project (UREAP) Phase I.
Approved on 7 April, the funding is intended to close existing financing gaps, ensure full compensation for project-affected persons, and support the completion of outstanding environmental and social commitments.
Launched in 2015, UREAP Phase I has significantly expanded electricity access across rural and peri-urban areas in Uganda, enabling last-mile connections for 137,770 households and benefiting an estimated 670,000 people, including households, small businesses, and public institutions.
According to Aleymahu Wubeshet-Zegeye, AfDB’s East Africa Regional Manager for Energy, the additional funding reinforces accountability and inclusion in project delivery.
“This financing ensures that no community is left behind. It allows us to complete our commitments to affected families and deliver lasting development impact,” he said.
In parallel, the Bank has approved the second phase of the programme, UREAP II, with total financing of €104.39 million.
This includes €86.58 million from the African Development Bank, alongside contributions from the Climate Investment Funds and the Government of Uganda.
UREAP II is expected to deliver 624 kilometres of medium-voltage lines and 2,154 kilometres of low-voltage distribution networks over six years.
It will enable approximately 259,723 new grid and mini-grid connections, benefiting more than 250,000 households, 3,000 businesses, and key public facilities such as schools and health centres.
The expanded programme is projected to provide first-time electricity access to nearly 1.18 million people, while reducing reliance on fossil fuels and traditional biomass energy sources.
The initiative aligns with the African Development Bank’s Country Strategy Paper for Uganda (2022–2026) and contributes to Mission 300, a joint initiative with the World Bank Group aimed at connecting 300 million people in Sub-Saharan Africa to electricity by 2030.
