By Kitab Unango On Thursday, 27 September, Uganda marked a significant milestone with the commissioning of its largest power generation facility to date, the Karuma Hydropower Project (KHP). This $1.7 billion mega-project, constructed by the Chinese hydropower company Sinohydro Corporation, promises to be a game-changer for Uganda and its neighbors, including South Sudan. The Karuma Hydropower Plant, capable of generating 600MW of electricity, will increase Uganda’s energy capacity to over
By Kitab Unango
On Thursday, 27 September, Uganda marked a significant milestone with the commissioning of its largest power generation facility to date, the Karuma Hydropower Project (KHP).
This $1.7 billion mega-project, constructed by the Chinese hydropower company Sinohydro Corporation, promises to be a game-changer for Uganda and its neighbors, including South Sudan.
The Karuma Hydropower Plant, capable of generating 600MW of electricity, will increase Uganda’s energy capacity to over 2,000MW and enhance the region's energy security.
Funded almost entirely by China, with China Exim Bank providing a $1.4 billion loan and the remainder covered by the Chinese government, the Karuma project is not just a power station, but a beacon of regional cooperation and development.
This new capacity also includes a 248-kilometer, 400kV transmission line to distribute electricity across Uganda and a further $180 million transmission line under construction to extend this power to South Sudan.
The commissioning of Karuma opens up new opportunities for energy-deficient countries like South Sudan, which stands to benefit significantly from its neighbor’s energy surplus.
During the commissioning ceremony, Ugandan President Yoweri Museveni expressed optimism about the transformative potential of Karuma and Uganda’s broader energy strategy.
He emphasized the need for affordable electricity to drive modern economies, highlighting the importance of large-scale hydropower projects.
“To build a modern economy, you need affordable, reliable electricity. High costs of power will keep us behind,” President Museveni remarked, underscoring his long-held belief in the power of energy to fuel development.
Museveni recalled the journey of the Karuma project, emphasizing how he had rejected earlier plans by a Norwegian independent power producer to construct a smaller 200MW dam at Karuma Falls.
“I told them that I’ve got somebody who has got a better idea. That’s how I abandoned the Norwegians. When the Chinese came in, I told them why don’t you make a tunnel and create more force using the water, so that you get more energy? The Chinese came in and they did not just say we can do it, but they can co-fund it.”
Museveni’s vision has now materialized with the commissioning of Karuma, a project that will provide clean and affordable electricity not just to Uganda, but to its neighbors as well.
South Sudan, a young nation still recovering from years of conflict , faces one of the lowest electricity access rates in the world.
With less than 10 per cent of the population connected to the grid, the majority of South Sudanese rely on expensive diesel-powered generators. The country’s power shortages have stunted industrial growth, hindered healthcare services, and limited overall development.
The Karuma Hydropower Plant could provide a solution to these challenges. With Uganda’s growing energy capacity and the $180 million transmission line under construction to South Sudan, there is a significant opportunity for South Sudan to import affordable and reliable electricity from Uganda.
This arrangement could reduce South Sudan’s reliance on costly fuel imports and facilitate the expansion of industries, particularly in key sectors such as agriculture, mining, and manufacturing.
For South Sudan, access to Uganda’s power supply could also contribute to stabilizing the country’s economy, creating jobs, and improving living standards.
In addition, it aligns with the broader regional strategy of integrating energy markets, as South Sudan continues its efforts to join the East African Power Pool (EAPP).
The completion of the Karuma project also opens the door for stronger diplomatic and economic relations between Uganda and South Sudan. As power becomes an increasingly traded commodity between the two nations, their shared infrastructure and economic interests will likely deepen.
Uganda’s ambitions for energy dominance do not stop at its borders. The Karuma project is part of a broader plan to position Uganda as a key energy supplier in East Africa.
In addition to South Sudan, Uganda already exports electricity to Rwanda, Kenya, and Tanzania, and Karuma will further strengthen these ties.
As Uganda increases its power generation capacity, it is poised to become a regional energy hub, contributing to the East African Community’s (EAC) vision of an interconnected power grid across member states.
Chinese Ambassador to Uganda, Zhang Lizhong, hailed the Karuma Hydropower Project as a "flagship project of China-Uganda cooperation." He emphasized that the plant will generate clean, affordable energy that will not only support Uganda’s domestic power needs but also bolster energy exports to neighboring countries.
“This project exemplifies the strength of our partnership and serves as a critical infrastructure investment for the region,” Ambassador Zhang noted.
With hydropower constituting over 90 per cent of Uganda’s electricity generation, the country’s commitment to renewable energy sets a positive example for other nations in the region.
The expansion of Uganda’s transmission lines will also support power developments and future energy projects in countries like South Sudan, Kenya, and Tanzania, ensuring a more resilient and sustainable regional power grid.
For South Sudan, access to affordable and reliable energy from Uganda could be transformative. With the completion of the $180 million transmission line connecting Uganda to South Sudan, the nation will have the opportunity to harness this new power source for industrial development.
Stable electricity is a prerequisite for industries like mining, construction, and manufacturing, all of which are critical to diversifying South Sudan’s oil-dependent economy.
In particular, the mining sector , which has shown signs of growth, would greatly benefit from a stable and affordable electricity supply. Reliable power could reduce operational costs for mining companies and improve the profitability of mining activities in resource-rich areas like Eastern Equatoria and Western Bahr el Ghazal.
Additionally, the agricultural sector, which employs the majority of South Sudan’s population, could expand with the availability of electricity for processing and storage facilities, improving food security and exports.
The impact of electricity from Uganda would also be felt at the grassroots level. Small and medium-sized enterprises (SMEs), which struggle with high operational costs due to reliance on diesel generators, could grow and create jobs with access to cheaper electricity.
This would not only boost local economies but also contribute to the country’s broader development goals outlined in the South Sudan National Development Strategy.
While the prospects of energy cooperation between Uganda and South Sudan are promising, challenges remain. South Sudan’s energy infrastructure is still underdeveloped, and the country will need to invest in upgrading its power transmission and distribution networks to fully benefit from Uganda’s electricity.
Political instability and ongoing conflicts in some regions of South Sudan also pose potential obstacles to long-term infrastructure projects.
Nevertheless, with the renewed peace efforts under the Revitalized Agreement on the Resolution of the Conflict in South Sudan (R-ARCSS) and the commitment of regional actors, there is hope that South Sudan can overcome these hurdles.
The energy partnership with Uganda, bolstered by international support, could serve as a foundation for stabilizing South Sudan’s economy and improving the quality of life for its people.