Uganda is pursuing increased European Union investment in power generation and renewable energy to reach 20,000 megawatts of installed capacity by 2040, Finance Minister Henry Musasizi said. The target forms part of the government's broader ambition to build a US$500 billion economy and support industrial expansion through the Tenfold Growth Strategy, which prioritises agro-industrialisation, tourism, mineral development including oil and gas, and science and technology. Musasizi said stronger investment partnerships with the EU would be essential to securing the capital, technology and expertise needed to expand electricity supply and improve infrastructure competitiveness. He made the remarks while closing the first day of the Uganda-EU Business Forum in Kampala, held under the theme of driving investment, renewable energy partnership and green industrialisation.
To support the capacity expansion, the government has allocated Shs2.1 trillion to energy development in the 2026/27 financial year. Priority projects include the proposed 380MW Kiba Hydropower Project, a 10MW floating solar plant at Isimba, and plans to develop at least 500MW of utility-scale solar projects in the Elgon and Acholi regions. The government also intends to expand transmission infrastructure to improve electricity delivery to industrial parks and export processing zones, where reliable power is essential for manufacturing and other commercial activities. Musasizi identified geothermal, wind and nuclear energy as additional areas where European investors could participate through project financing, joint ventures and technology partnerships. Uganda has identified 27 geothermal sites with an estimated potential of 1,500MW.
EU Ambassador to Uganda Jan Sadek reaffirmed the bloc's commitment to mobilising financing and strengthening investment partnerships under its Global Gateway strategy. However, he cautioned that turning energy potential into bankable projects requires predictable regulations, appropriate financing mechanisms and strong partnerships between government and the private sector. The forum is designed to provide a platform for Ugandan and European businesses to identify investment opportunities, strengthen commercial partnerships and mobilise capital for renewable energy development.
Trade between Uganda and the EU has grown significantly in recent years, providing evidence of investment potential. Uganda's exports to the EU increased from approximately €500 million in 2019 to €1.8 billion in 2025. The country's total exports of goods and services reached US$18.4 billion in the 2025/26 financial year. Musasizi urged European investors to move beyond exporting raw materials and instead invest in Ugandan production, processing and manufacturing through joint ventures, public-private partnerships and technology transfer arrangements that could expand domestic production and create jobs.