The Energy Equation: Uganda’s Extractives Industry And The Electrification Imperative

Uganda is entering an exciting growth period; the country’s energy and extractives industry, which includes mining, oil, and gas and electricity generation, is today driving infrastructure growth and subsequent electrification efforts.

And with good reason. Uganda’s reserves of critical minerals, which include lithium, cobalt, and rare earth elements, are sought after and attracting global investment, especially for use in the manufacture of renewables. This has put regions like Karamoja at the forefront of exploration and extraction activities.

Furthermore, Uganda’s Energy Transition Plan  (ETP), launched in 2024, outlines a roadmap for universal access to modern energy and sustainable economic transformation, which includes $1.5 billion earmarked for renewable energy initiatives.

This, in turn, is equally good news as Uganda, like its counterparts in Eastern Africa, continues to face access to electricity challenges, with rural areas still underserved and reliant on diesel generators.

The above is therefore serendipitous, if you will, and represents the culmination of two all-important growth points: one, the expansion of the country’s energy and extractives industry, and two, a renewed commitment to providing access to electricity.

The above is undoubtedly accelerating investment into new power plants, transmission lines, and distribution networks.  And the subsequent supporting infrastructure is creating opportunities for nearby communities to benefit from grid expansion and improved access to reliable, affordable power.

Infrastructure-led growth

As mentioned, the economic impact of Uganda’s energy and extractives sector is far-reaching. However, it is also major cities like Kampala that are witnessing an infrastructure boom, with new roads, housing, and commercial developments reshaping the city’s landscape.

Across the country, industrial parks and agro-processing hubs are emerging, laying the groundwork for broader economic diversification.

Also, anticipated energy and extractives pipelines and refinery initiatives are stimulating demand for large-scale power generation and grid expansion. These projects highlight the sector’s dual role: fuelling immediate industrial growth while also unlocking long-term development for communities.

Technology enables growth

Meeting the demands of this rapid expansion requires advanced energy management and automation solutions. Schneider Electric is playing an important role in Uganda’s journey. With a permanent office established in Kampala, we are well-positioned to deliver scalable, sustainable technologies that adapt to the country’s evolving needs.

From medium- and low-voltage (MV and LV) solutions to grid automation and microgrid systems, our portfolio addresses the full spectrum of Uganda’s energy landscape. Our EcoStruxure for Power and Grid platform, for example, enables utilities to digitise operations for real-time monitoring and control, integrate renewable energy sources, and strengthen grid reliability.

In rural and peri-urban settings, modular microgrids combining solar and battery storage offer sustainable alternatives to diesel generators, powering schools, health centres, and small industries.

 Powering Uganda’s digital future and establishing resilience

The extractives industry is also indirectly driving another critical pillar of Uganda’s modernisation: the growth of data centres. These facilities are essential to digital transformation, providing secure hosting, enabling e-governance, and supporting private sector innovation.

Indeed, as demand for data centres grows, reliable electricity becomes indispensable. This again makes a solid case for strengthening Uganda’s power infrastructure.

The continued and strategic investments in Uganda’s power networks are key to building economic resilience and ensuring sustainable growth. Expanding and modernising the grid will reduce electricity costs, making local industries more competitive in regional and global markets.

Here, reliable, cost-effective power will also attract investment into manufacturing, logistics, and services, positioning Uganda as a competitive export hub.

Schneider Electric is committed to partnering with Uganda on this journey. Through our Access to Energy programme, we endeavour to provide reliable power to underserved communities and critical facilities.

Ultimately, by building capacity through local partnerships and offering adaptable, efficient technologies, we are assisting in Uganda’s continued and sustained growth.

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By Josiah Habwe, General Manager for Tanzania & Uganda, Energy Business at Schneider Electric