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EU to upgrade Ugandan power plants with Є60 million Euro

Published

1 year ago

October 30, 2023

The European Union (EU) has announced plans to invest 60 million euros ($63 million) in upgrading one of Uganda’s largest hydropower plants.

EU’s ambassador to Uganda, Jan Sadek told a mining conference in the capital, Kampala on Monday that the funding would partially help the East African country plug a financing gap for its ageing energy infrastructure. The Nalubaale and Kiira hydropower plant complex, located at the source of the River Nile at Jinja in Uganda’s east, produces about 380 megawatts (MW). It is Uganda’s oldest power plant, commissioned in 1954.

The fund announcement is a positive fallout following a backlash against Uganda after its harsh legislation against the LGBTQ+ community which triggered financial sanctions against the country from the United States and other bodies like the EU, the World Bank, and the International Monetary Fund (IMF).

Prior to now, South African power giant, Eskom ran the plant under a 20-year concession that ended early this year, after which the government retook control.

“We’ll be investing some 60 million euros… in the rehabilitation of Kiira and Nalubaale hydropower plants in order to provide reliable energy for Uganda’s industrialization,” Sadek said.

Sadek did not specify whether the funding would come from a grant or credit or when the work would start. According to him, the funding will be provided through the EU’s global gateway strategy which aims to support the 2030 UN Sustainable Development Goals.

The underfunding of Uganda’s energy infrastructure has resulted in widespread outages and occasional catastrophic failures as older components of the system age. The country currently has an installed capacity of 1,400 MW, primarily from its hydroelectric dams. This year, the Chinese-built Karuma plant, also on the Nile, will be serviced, increasing Uganda’s power capacity to 2000 MW.

Related Topics:European Union Featured Uganda

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”