Umeme Eyes Sierra Leone for Expansion After Uganda Concession Ends

Umeme Limited, a prominent player in Uganda’s electricity distribution for twenty years, is now setting its sights on Sierra Leone for future growth. The company’s concession in Uganda concluded in March 2025, prompting a strategic pivot towards new markets where its extensive experience can be applied.

In its 2025 Annual Report, Umeme indicated its exploration of an opportunity to assist the Government of Sierra Leone with its electricity distribution infrastructure. This potential venture is part of a broader strategy to reinvent the company following the non-renewal of its Ugandan concession, which had been its primary source of revenue.

The company’s post-concession strategy focuses on two key areas: recovering outstanding claims from the Ugandan government and identifying new, profitable business opportunities. Sierra Leone represents the most concrete geographical prospect revealed to date, suggesting a move to monetize the technical and institutional capabilities Umeme developed in Uganda.

During its tenure in Uganda, Umeme significantly transformed the electricity distribution network. When the company began in 2005, customer connections were around 290,000, with energy losses at 38 percent. By the end of its concession, customer connections had surged to approximately 2.2 million, energy losses were reduced to 16 percent, and the network expanded considerably.

Sierra Leone’s power sector currently faces challenges similar to those Umeme encountered in Uganda, including limited electricity access, unreliable supply, and aging infrastructure. With an estimated 30 percent of its population having electricity access, and a significant gap between available generation capacity and projected demand, the country presents opportunities for private investment in its energy infrastructure.

Umeme’s potential expansion into Sierra Leone could signify a major transition for the company, moving from a single-market operator to a regional electricity infrastructure and services provider. However, any new venture will be carefully evaluated to ensure it offers superior returns for shareholders compared to returning capital directly to them. The company is also pursuing advisory services and digital technology solutions in the energy sector across Africa.

While exploring new horizons, Umeme’s immediate financial future remains intertwined with its Ugandan operations due to ongoing arbitration proceedings in London regarding outstanding payments from the Ugandan government. Nevertheless, the pursuit of new business, like the potential venture in Sierra Leone, is being conducted in parallel with the legal process.

Source: Daily Monitor (Uganda)