Business
UEDCL Drives Uganda’s Industrial Growth Through Local Procurement
The Uganda Electricity Distribution Company Limited (UEDCL) is playing a strategic role in fueling the nation’s economic growth, with a strong focus on supporting local industries.
Speaking at the 2025 Electricity Dialogue on Thursday, August 28, at the UMA Showground in Kampala, UEDCL Managing Director Paul Mwesigwa reaffirmed the company’s commitment to the Buy Uganda, Build Uganda (BUBU) policy, which prioritises local procurement and domestic industrial development.
“Our approach is not just about supplying reliable power; it’s about building a self-sustaining cycle of shared prosperity,” Mwesigwa said.
Supporting Local Industry
Under Mwesigwa’s leadership, UEDCL has shifted from being a traditional utility provider to becoming a key partner in Uganda’s industrialisation. The company now sources critical materials, including transformers, poles, and meters, from local manufacturers.
“This is a direct implementation of the BUBU policy, designed to boost domestic production, create jobs, and reduce reliance on imports,” he said.
UEDCL has earmarked Shs285 billion (USD 74 million) for investment in the 2025/2026 financial year, with a significant portion allocated to local procurement. The company has also secured accreditation from the Public Procurement and Disposal of Public Assets Authority (PPDA) to ring-fence contracts for local firms, ensuring that even large-scale projects benefit Ugandan businesses.
Among the beneficiaries of this policy are local companies such as Transmax Limited for transformers, Kampala Pole Treatment Plant Ltd, and The New Forest Company Ltd for poles.
Mwesigwa explained that the strategy goes beyond procurement. By empowering local manufacturers, UEDCL stimulates job creation and economic activity, creating a virtuous cycle where Ugandans employed in these industries also become consumers, sustaining growth across the economy.
“By ensuring that the money we spend circulates within Uganda, we create a ripple effect from the factory floor to household consumption,” he said.
Reliable electricity, combined with strategic support for local content, is removing a critical bottleneck for industrial growth. UEDCL’s model demonstrates how a national agency can leverage procurement as a tool for national development, positioning the company as a catalyst for Uganda’s economic transformation.
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