Uganda is targeting electricity generation capacity of 20,000 megawatts by 2040 as the government seeks increased investment from the European Union to expand renewable energy production, support industrialisation and drive its ambition of building a US$500 billion economy.
Finance Minister Henry Musasizi made the call on Tuesday while closing the first day of the two-day Uganda EU Business Forum at Serena Hotel in Kampala, where government officials, European investors and business leaders discussed opportunities for financing energy projects and promoting green industrialisation.
The forum was held under the theme “Driving Investment, Renewable Energy Partnership and Green Industrialization under the Global Gateway Strategy.”
Musasizi said reliable and affordable electricity would be essential to achieving the government’s Tenfold Growth Strategy, which prioritises agro industrialisation, tourism development, mineral development, including oil and gas, and science, technology and innovation.
“Reliable and adequate electricity supply is critical to implementing the Government’s Tenfold Growth Strategy and unlocking Uganda’s economic potential,” Musasizi said.
He said the government was pursuing an ambitious expansion of electricity generation and transmission infrastructure to meet growing demand from industries, businesses and households while supporting the country’s long term economic transformation.
Uganda has set a target of reaching 20,000MW of electricity generation capacity by 2040, with Shs2.1 trillion allocated to energy development in the 2026/2027 financial year budget.
Among the priority projects is the proposed 380MW Kiba Hydropower Project, alongside a 10MW floating solar power plant at Isimba and plans to develop at least 500MW of utility scale solar projects in the Elgon and Acholi regions.
The government also plans to expand electricity transmission infrastructure to supply industrial parks and export processing zones, where reliable power is expected to support manufacturing, investment and job creation.
Musasizi said Uganda’s energy sector offered substantial opportunities for European companies interested in developing renewable energy projects, supplying technology, establishing manufacturing facilities and supporting value addition.
He identified hydropower, geothermal, solar, wind and nuclear energy as areas in which investors could participate through direct investment, joint ventures and partnerships with Ugandan companies.
The minister also highlighted Uganda’s geothermal potential, revealing that 27 sites had been identified across the country, with an estimated generation potential of 1,500MW.
Developing these resources would help diversify Uganda’s energy mix, reduce dependence on individual sources of electricity and provide additional power for industries expected to emerge as the economy expands.
Musasizi said a diversified and reliable energy supply would strengthen manufacturing, improve the competitiveness of Ugandan exports, and enable local businesses to produce higher-value goods for domestic and international markets.
He urged European investors to explore joint ventures, public-private partnerships and technology acquisition arrangements that would strengthen Uganda’s productive capacity rather than concentrate solely on supplying equipment or financing individual projects.
The minister also called on European partners to support market access for Ugandan value added products, saying stronger commercial relationships would help increase productivity, create jobs and accelerate economic growth.
Uganda’s trade with the European Union has expanded in recent years, with the minister noting that Ugandan exports to the bloc increased from approximately €500 million in 2019 to €1.8 billion in 2025.
Exports of goods and services also reached $18.4 billion in the 2025/2026 financial year, reflecting the importance of international markets to the country’s economic ambitions.
The government is seeking to build on these commercial ties by attracting investment into sectors that can increase domestic production, expand exports and create employment opportunities for Uganda’s growing population.
European Union Ambassador to Uganda Jan Sadek reaffirmed the bloc’s commitment to mobilising financing and strengthening investment partnerships under the Global Gateway strategy, which supports infrastructure and sustainable development investments.
Sadek said Uganda’s energy potential could attract greater private sector participation if investment opportunities were supported by commercially viable projects, predictable regulations and financing arrangements that reduce risks for investors.
He emphasised that identifying investment opportunities alone would not be sufficient to secure funding, urging project developers and government agencies to prepare proposals capable of attracting financing and progressing to implementation.
Sadek encouraged businesses, financial institutions and public agencies participating in the forum to use the matchmaking and deal making sessions to establish partnerships, develop viable projects and move discussions towards actual investments.
The two-day forum provides a platform for Ugandan and European businesses to explore cooperation in renewable energy, infrastructure development, industrialisation, and other sectors considered central to Uganda’s economic transformation.
For Uganda, achieving the 20,000MW electricity target will require substantial investment in new generation facilities, transmission networks and supporting infrastructure, as well as financing arrangements that enable private investors to participate in large scale projects.
The government is banking on expanded energy supply to support industrial growth and the wider ambition of transforming Uganda into a $500 billion economy by 2040.
