Uganda's energy sector: A fiscal risk

This paper explores the fiscal risk posed by the electricity sector in Uganda. While it will highlight a number of relevant effects, it is not primarily focused on the impact of the COVID-19 health crisis on the energy sector’s performance.

Firstly, Uganda’s economic development over the past two decades and the government’s current debt position are introduced. Secondly, the financial performance of the sector and its state-owned enterprises are analysed. Thirdly, the ability of the enterprises to recover their operational costs with the current tariff methodology is studied. This enables an assessment of the fiscal risk posed by the sector.