By Ben Musanje
As Ugandans continue to grapple with persistent electricity outages and businesses count the cost of unreliable power, the Uganda Electricity Distribution Company Limited (UEDCL) has embarked on an urgent procurement drive, turning to regional suppliers in Kenya and Tanzania to bridge a growing shortage of transformers and other essential electricity equipment.
The move comes as local manufacturers struggle to meet the company’s rising demand, exposing the scale of the supply constraints facing the country’s electricity distribution network.
Speaking during a media engagement at UEDCL offices in Nakasero, the company’s Head of Procurement and Disposal, Innocent Byamukama, disclosed that UEDCL had contracted nine local transformer manufacturers but admitted that their production capacity was insufficient to meet the immediate demand.
“Currently, we’ve got about nine suppliers of transformers in Uganda, and all the nine have contracts. However, the issue is capacity. They are not able to catch up with our current demand, which we are seeing in the short term,” Byamukama said.
To address the shortage, UEDCL is supplementing local supplies with equipment sourced from neighbouring countries, particularly Kenya and Tanzania.
Byamukama revealed that the company expects to receive approximately 1,000 transformers from regional suppliers in the short term as it works to stabilise electricity distribution and address faults affecting consumers.
He said the company was already sourcing transformers from Tanalec, its sister company in Kenya, while also exploring additional supplies from other manufacturers in Kenya and Tanzania.
“We are supplementing this with other supplies from the regional suppliers to be able to stabilise, and then we’ll continue with our local ones,” he explained.
The regional procurement drive is intended to provide immediate relief while Ugandan manufacturers work to expand their production capacity to meet UEDCL’s requirements.
Nine local manufacturers contracted, but capacity remains a hurdle
Despite turning to regional suppliers, UEDCL says it remains committed to supporting domestic manufacturers.
Byamukama disclosed that the company had signed contracts with nine local transformer suppliers valued at approximately $104 billion, running for 18 months.
He, however, noted that having contracts in place was not enough, as manufacturers needed to increase their production capacity to deliver the required equipment within the expected timelines.
The shortage comes at a time when UEDCL is under pressure to rehabilitate ageing infrastructure, expand distribution capacity and respond to growing electricity demand.
For electricity consumers, the availability of transformers is particularly critical because damaged or overloaded units can leave entire communities without power while replacement equipment is sourced.
The company is therefore relying on a combination of local production and regional imports to address the immediate supply gap.
Meters also arrive through international procurement
Beyond transformers, UEDCL is also accelerating procurement of electricity meters to support its operations.
Byamukama said the company was combining purchases from local suppliers with international procurement to ensure adequate supplies.
He disclosed that an international procurement contract was signed in September, with the first consignment received on October 30.
“We already went ahead and did international procurement to supplement the local suppliers that we have. I think we had a contract signed in September. By 30th of October, we received our first consignment,” he said.
He described the delivery timeline as encouraging, saying the company was beginning to see faster turnaround times in the supply of essential equipment.
The strategy reflects UEDCL’s effort to widen its procurement sources rather than depend entirely on domestic manufacturers whose production capacity is currently under pressure.
Local manufacturers face Shs7.52 billion payment backlog
However, UEDCL’s efforts to strengthen local manufacturing are unfolding against the backdrop of significant outstanding payments to domestic electricity equipment suppliers.
A report by Parliament’s Committee on Environment and Natural Resources on persistent power supply interruptions revealed that UEDCL owes two local manufacturers approximately Shs7.52 billion in unpaid invoices.
Steema Transformers and Electricals (U) Limited is owed approximately Shs4.453 billion across 87 invoices, while Orion Transformers and Electrics Limited is awaiting approximately Shs3.068 billion across 28 invoices.
Of the combined outstanding amount, approximately Shs3.14 billion, covering 81 invoices, had remained unpaid for more than 90 days.
The payment backlog raises concerns about the ability of local manufacturers to sustain production and increase capacity at a time when UEDCL is asking them to supply more equipment to support the electricity network.
For manufacturers already operating under capacity constraints, delayed payments could add pressure on their ability to finance raw materials, production and delivery schedules.
UEDCL’s Acting Managing Director, Eng. Joselynne Rwabwogo Rwakakooko, has said the company is deliberately working with local industries to strengthen their capacity while widening its procurement options through collaboration with other agencies.
The company has also acknowledged that its ultimate success will depend on improving customer experience, including faster response to outages and timely replacement of faulty equipment.
A race to stabilise the electricity network
The procurement developments come as UEDCL implements a broader infrastructure recovery programme aimed at addressing years of delayed investment and the deterioration of sections of the distribution network.
The company has announced a $994 million investment plan targeting network expansion, rehabilitation of ageing infrastructure and increased electricity distribution capacity.
For now, however, the immediate challenge remains getting enough transformers and other equipment to areas experiencing supply interruptions.
Byamukama said the regional imports would complement local production rather than replace Ugandan manufacturers, with the company expecting domestic suppliers to continue playing a central role once their production capacity improves.
The unfolding procurement strategy presents a delicate balancing act for UEDCL: securing urgently needed equipment from abroad while ensuring that local manufacturers are supported, paid and given an opportunity to expand.
Ultimately, the success of the exercise will be judged not by the number of contracts signed or transformers ordered, but by how quickly the equipment reaches affected communities and restores electricity to homes, businesses and industries. (For comments on this story, get back to us on 0705579994 [WhatsApp line], 0779411734 & 041 4674611 or email us at mulengeranews@gmail.com).
