The European Union is set to inject €30 million for the planned rehabilitation of the Nalubaale-Kiira hydropower complex in Uganda as part of commitment to supporting the country’s transition to middle-income status with “serious, sustainable investment.
Speaking at the EU Ambassador’s Residence in Kampala on Thursday to launch year-long celebrations of the EU-Uganda partnership, the EU Head of Delegation, Ambassador Jan Sadek, said the bloc would deepen support under its Global Gateway strategy, targeting energy, connectivity, climate resilience and private sector growth.
Sadek cited the planned rehabilitation of the Nalubaale-Kiira hydropower complex, backed by a €30 million EU grant expected to unlock major loans from the European Investment Bank and partners, with works targeted to begin after phase one in 2026.
Sadek said the European Union wants to scale up investment in Uganda’s infrastructure, trade and job creation. “Uganda and the EU mark 50 years of cooperation this year and the bloc will continue to back up the country’s transition to middle-income status with “serious, sustainable investment,” Sadek said
“We are celebrating something simple, but powerful: a partnership that has lasted, adapted, and delivered,” Sadek added.
Over the last five decades, he revealed, the EU has invested more than €5 billion in development cooperation in Uganda, alongside an estimated €5 billion in European private investment.
“That combination matters: public partnership and private enterprise, working in the same direction – toward opportunity, jobs, services and resilience,” he said.
At the centre of the EU’s next phase of engagement is a drive to mobilize large-scale infrastructure financing. Amb Sadek cited the planned rehabilitation of the Nalubaale-Kiira
“That is what Global Gateway is meant to do: mobilise serious, sustainable investment – not for headlines, but for long-term impact,” he said.
The EU has previously supported key road projects including the Kampala Northern Bypass, the Mbarara-Katuna corridor and the Atiak-Laropi link, as well as long-standing investments in national parks, health and education.
Amb Sadek said cooperation is increasingly forward-looking, with emphasis on job creation, sustainable growth, governance and social inclusion.
Through the EU-Uganda Forest Partnership, he added, the bloc is backing landscape restoration and green value chains. “Protecting forests is not only about nature; it is also about livelihoods and green jobs,” he said.
Trade has emerged as one of the strongest pillars of the relationship.
Uganda benefits from duty-free, quota-free access to the EU market under the Everything But Arms arrangement. Since 2019, exports to the EU have nearly tripled from about €500 million to €1.5 billion. Between 2023 and 2024 alone, exports grew by 58 per cent, with Uganda recording a positive trade balance with the bloce since 2022
“If one product symbolizes our partnership, it is coffee,” Amb Sadek said, noting that Europe remains a key destination for Ugandan beans, with EU support focusing on quality improvement, certification and climate resilience.
MG/abj/APA