manufacturing opportunities
In East Africa, the Ugandan trade minister, Amelia Kyambadde says the unbundling of the electricity sector was a bad call.

According to the Monitor, the minister’s view corresponds with the high power rates that now face large manufacturers in the country.

Before the government liberalised the sector in the early 2000s, large manufacturers paid about Shs100 ($0.027) per unit compared to the Shs370.2 ($0.102) per unit they pay now, media reported. Read more…

“We have made mistakes. Number one, over-liberalisation or privatisation of our utilities, for example, energy and telecoms,” Kyambadde said.

She added: “[Now] you find the industries cannot afford to pay for the energy. I think we need to have a PPP [Public Private Partnership].”

Kyambadde was speaking on Tuesday during a United Nations Development Programme Uganda dialogue about promoting Sustainable Industrialisation in the country.

Government ownership

Also speaking at the event was the special adviser to the Prime Minister of Ethiopia, Dr Arkebe Equbay, who attributed Ethiopia’s very end-user power tariff to the government’s ownership of the generation, transmission and distribution utilities.

“Transmission and distribution is 100% state-owned. It has to be because we cannot subsidise priority sectors if transmission and distribution is not under the government,” Dr Equbay said. Read more…

Power tariffs for manufacturers

This week, the national Electricity Regulatory Authority announced that power tariffs for all end-users will be going down in this quarter as part of the quarterly adjustment.

ERA’s new chief executive officer, Ziria Tibalwa Waako, said: “The resultant effect is a positive inflation adjustment factor of Shs1.5 (0.00041) per kilowatt hour (kWh) for domestic consumers, Shs1.2 ($0.00033)/kWh for commercial consumers, Shs1.3 ($0.00036) /kwh for medium industrial consumers and Shs0.6 ($0.00017) /kwh for large industrial consumers…”

However, media reported that the new charge for large industries is still two times higher than the $0.05, which President Yoweri Museveni has been promising industrial users.

In the arriving at the end-user tariff for the next quarter, it was also noted that the Uganda Shilling appreciated against the US dollar.

 

Featured image: Chamber of Commerce Hawaii