As Uganda moves towards full control of its electricity distribution, the government has strategically turned to Stanbic Bank Uganda, the country’s leading financial institution, for a crucial loan of Shs700 billion to finance the buyout of Umeme Limited.
This partnership not only reaffirms Stanbic Bank’s position as Uganda’s top financial institution but also highlights its unmatched ability to manage large-scale, transformative projects that are key to the nation’s growth.
The decision to target Stanbic Bank for this monumental task is rooted in the bank’s proven expertise in handling complex financial transactions, its deep understanding of Uganda’s economic landscape, and its strong track record of driving sustainable development across key sectors.
With its reputation as the most reliable financial partner for large infrastructure projects, Stanbic was the natural choice for the government to ensure a smooth transition in the energy sector.
At the helm of this significant financial transaction is Francis Karuhanga, Group CEO of Stanbic Bank Holdings Uganda Limited, whose strategic vision and leadership have consistently guided the bank toward greater achievements.
Supporting him are Mumba Kenneth Kalifungwa, the Chief Executive, and Samuel Mwogeza, Executive Director and Head of Personal and Private Banking.
Together, they form a strong leadership team with a clear mandate to drive this project forward and contribute to Uganda’s energy sector transformation.
Their collective expertise and commitment ensure that the bank remains at the forefront of economic development, delivering successful projects that benefit Ugandans across various sectors.
As the leading financial services organisation in Uganda, Stanbic Bank strongly believes that Uganda is its home, and the bank is deeply committed to driving the country’s growth.
The bank’s involvement in the Umeme buyout reflects its broader role in supporting the government’s strategic initiatives, including the Stanbic Women, Youth, and Farmers (WYF) Agenda, which seeks to empower women, youth, and farmers as part of Uganda’s long-term socio-economic transformation.
Gov’t Seeks Shs700Bn Loan to Buyout Umeme
The Ugandan government is in negotiations with Stanbic Bank to secure a loan of Shs700 billion for the buyout of Umeme, Uganda’s current power distributor.
This buyout comes as the company’s 20-year concession agreement nears its expiration on March 31, 2025.
The government’s decision to fully take over Umeme’s operations marks a significant shift in Uganda’s energy sector, and the loan provided by Stanbic Bank is essential to facilitate this transition.
The partnership with Stanbic Bank ensures that the buyout will be carried out seamlessly and effectively. With Stanbic Bank’s financial resources, expertise, and understanding of the country’s priorities, the loan will enable the government to take full ownership of the electricity distribution network while minimizing disruption to services.
Umeme’s Impact on Uganda’s Economy
For over 20 years, Umeme has played a central role in Uganda’s economic development. The company invested more than USD 440 million between 2013 and 2018 in upgrading infrastructure, acquiring new technology, and expanding distribution points across the country.
Umeme’s operations have created thousands of jobs for Ugandans, both directly and indirectly, with over 2,500 employees in 2024.
Umeme’s contribution to Uganda’s economic growth has been significant, but with the government taking over, the next phase of the country’s energy sector transformation is about to begin.
Stanbic Bank’s involvement is critical to ensuring that this transition is both financially sound and aligned with the government’s long-term vision of reducing electricity tariffs, expanding rural electrification, and improving the overall quality of services.
The Future of Uganda’s Energy Sector
The transition of operations from Umeme to the Uganda Electricity Distribution Company Limited (UEDCL) is a key element of the government’s broader strategy to reform the energy sector.
This change aims to streamline electricity distribution, lower tariffs, and extend electricity access to rural areas.
Stanbic Bank’s role in financing this transition is crucial for achieving these objectives, ensuring that the government can meet its goals of more affordable electricity and improved service delivery to all Ugandans.
Stanbic Bank’s long-standing expertise in large-scale infrastructure projects and its ability to provide the necessary financing for such initiatives make it the ideal partner for this important shift in Uganda’s energy landscape.
The bank’s continued involvement in major national projects reaffirms its role as a central player in Uganda’s economic development.
Stanbic Bank’s Role in Uganda’s Growth
Stanbic Bank’s strategic involvement in the Umeme buyout demonstrates the bank’s broader commitment to Uganda’s sustainable growth.
As the most trusted and preferred financial partner for large-scale projects in Uganda, Stanbic Bank continues to lead by example, providing the financial resources and expertise needed to drive transformative initiatives.
The bank’s contribution to the Umeme buyout goes beyond just securing financing for the transaction; it also plays an instrumental role in shaping the future of Uganda’s energy sector, which is key to the country’s economic growth and the improvement of the livelihoods of Ugandans.
This partnership is yet another example of Stanbic Bank’s ongoing support for Uganda’s economic development and its unwavering commitment to the socio-economic empowerment of its people.
With strong leadership, a clear commitment to national development, and a focus on empowering key sectors, Stanbic Bank remains the cornerstone of Uganda’s economic transformation.
Through partnerships like the one with the government, Stanbic Bank continues to reinforce its position as the number one financial institution in Uganda.