UGANDA Law and Practice Contributed by: Onyango Owor, Miriam Babirye Kaggwa and Namugera Joel Peter, Onyango & Company Advocates
2. Establishing and Exiting Early- Stage Companies in the Energy and Infrastructure Industry 2.1 Establishing and Financing a New Company Establishing a New Company in Uganda Setting up a new company in Uganda for energy and infrastructure projects involves registration with the Uganda Registration Services Bureau (URSB). The process requires submitting a company name, memo- randum and articles of association, as well as details of shareholders, directors and beneficial owners, and the company’s address. Foreign investors must obtain an investment licence from the Uganda Investment Authority (UIA), which facilitates approvals for energy and infrastructure ventures. Type of entity The most common entity types for energy and infra- structure projects are private limited liability com- panies (LLCs) and public limited companies (PLCs). Depending on the size of the project, LLCs are pref- erable for their flexibility and limited liability, making them suitable for smaller and joint ventures, while PLCs are suitable for larger projects which require public investment or future listing on the Uganda Securities Exchange (USE). Early-stage financing Early-stage financing typically comes from govern- ment-backed loans, private equity and venture capi- tal. Development finance institutions, such as the African Development Bank (AfDB) and the Eastern and Southern African Trade and Development Bank (TDB), often support infrastructure projects. A number of local banks also provide financing, though their high interest rates can pose a challenge to start-ups. Venture capital Venture capital is increasingly active in Uganda’s renewable energy sector, with funds targeting solar and hydropower projects. Investors often require detailed business plans and proof of regulatory com- pliance, such as licences from the Electricity Regula- tory Authority (ERA). Venture capital agreements typi- cally include term sheets, shareholder agreements and subscription agreements. These documents outline
• Ayago Hydropower Project – This is a USD1.8 bil- lion project on the River Nile, which is expected to generate 600–840 MW and is currently in feasibility with new investors sought after delays in March 2025. • Oriang Hydropower Project – This is a run-of- river project on the Nile, set to generate 392 MW, developed by Mota Engil Africa with construction planned for 2029–2032. • Kiba Hydropower Project – This is a run-of-river project on the Nile, with a target of 400 MW, with construction expected from 2029–2032. • Karuma Hydropower Project – This is a 600 MW project which was commissioned in June 2024. • 100 MW solar and battery project – In August 2025, the government approved the construction of a 100 MW solar photovoltaic plant with a 250 MWh battery energy system in Kapeeka, Nakaseke District. The facility will be developed by US-based Energy America, with its East Africa subsidiary, EA Astrovolt, serving as lead project developer and execution partner. The planned infrastructure includes high-efficiency solar modules optimised for tropical conditions and scalable battery archi- tecture for flexible capacity, among others. Infrastructure highlights include: • the USD4 billion, 60,000 b/d refinery on which con- struction is due to start; and • the EACOP, which will be 1,443 km in length. The mix is heavily renewable at 80%-plus, with hydro- power at 2,500 MW capacity and solar/wind/geo- thermal scaling to meet the 2040 goal set, while the remaining just under 20% comprises conventional oil and gas projects at Tilenga and Kingfisher, which are expected to peak at 230,000 b/d by 2028.
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