Ugandan government on Friday said it has started energy sector reforms as it strives to provide affordable electricity.
Ministry of Energy and Mineral Development said in a statement the government will not renew the concession of Umeme, the country's main power distributor. The government will also not renew the concession of Eskom, the country's largest energy generator.
According to the statement, Umeme's current 20-year concession expires in 2025 while Eskom's 20-year concession expires next year.
"The reforms are expected to minimize expensive private capital in the electricity sub-sector investments in generation, transmission, and distribution," the statement said.
The statement noted that the reform will culminate in creating the Uganda National Electricity Company Limited as a state-run entity with majority shareholding under a Public Private Partnership arrangement as a possible option.
"The ministry continues to put in place all measures to ensure universal access to clean, reliable, and affordable energy," the statement said.
Editor: Galia
