UGANDA Law and Practice Contributed by: Onyango Owor, Miriam Babirye Kaggwa and Namugera Joel Peter, Onyango & Company Advocates
5. Overview of Regulatory Requirements 5.1 Regulations Applicable to Energy and Infrastructure Companies As mentioned in 2.1 Establishing and Financing a New Company , registration of a new company in Uganda is done through the URSB. Upon registration, any company within the energy and infrastructure sec- tor is expected to obtain the permits and approvals required by the following regulations and authorities. Electricity Act Chapter 157 This regulates electricity generation, transmission and distribution. This Act established the ERA, which is responsible for the licensing of companies in the elec- tricity sector. The ERA provides licences such as the generation licence, transmission licence, distribution licence, sale licence, export and import licence. Notice of intention to apply for any licences must be given to the ERA, which publishes the notice in newspapers with an invitation for comments from directly affected parties and affected public agencies. After these com- ments are received, the ERA decides whether to grant the permit to proceed with the application. The per- mit allows the intended applicant to carry out studies or any other activity for the purpose of preparing the application for a licence. The notice of application is also published. The process takes between six and eight months. Petroleum (Exploration, Development and Production) Act Chapter 161 This regulates the exploration, development and pro- duction of petroleum. It established the Petroleum Authority of Uganda (PAU) alongside the Ministry of Energy and Mineral Development, which licenses entities engaged in petroleum activities. Permits and licences issued include the reconnaissance permit, petroleum exploration licence, petroleum production licence, and facility licence, among others. The time- lines for obtaining these permits and licences vary. Other laws include the Petroleum (Refining, Conver- sion, Transmission and Midstream Storage) Act Chap- ter 162 and the Petroleum Supply Act Chapter 163.
Atomic Energy Act Chapter 154 This regulates, among other things, the production of atomic energy. The Atomic Energy Council is respon- sible for authorising radiation activities. The timeframe varies depending on the activity for which authorisa- tion is sought. National Environment Management Authority (NEMA) Energy and infrastructure projects often require envi- ronmental impact assessments; the National Environ- ment Management Authority (NEMA) provides environ- mental approvals. Obtaining a NEMA approval takes between three and five months or more, depending on the details of the project. 5.2 Primary Securities Market Regulators The CMA, established under the Capital Markets Authority Act Chapter 64 is the primary securities mar- ket regulator for M&A transactions in Uganda. 5.3 Restrictions on Foreign Investments In Uganda, foreign investment faces minimal restric- tions, as Ugandan law allows 100% ownership in most sectors including energy and infrastructure, except in sensitive areas like defence and strategic minerals, where conditions may be imposed. A foreign direct investment (FDI) filing is mandatory for investments exceeding USD250,000, and requires an investment licence from the UIA with project and shareholder details. The process is non-suspensory, allowing operations to commence post-filing while approvals are processed. 5.4 National Security Review/Export Control Uganda lacks a formal national security review pro- cess for acquisitions since the related laws have no indicated screening mechanism; however, the UIA, the Ministry of Energy and other regulatory bodies may assess proposed acquisitions for security implications on a case-by-case basis, with no specific restrictions based on investor origin. The following export control regulations are in place: • The Export Trade Act Chapter 69, and the External Trade (Restriction of Import and Export) Regula-
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