2024 was particularly challenging for Umeme Limited, the main electricity distributor in Uganda. The company announced on Friday, June 13 a net loss after taxes of 511 billion Ugandan shillings ($140 million) in 2024, a first in several years, marking a turning point in its economic model as it approaches the end of its concession.
In 2024, Umeme recorded a revenue of 2,314.77 billion Ugandan shillings, up 5.4% from 2,196.36 billion in 2023. Gross profit also increased by 10.1%, reaching 821.88 billion, compared to 746.72 billion the previous year. These performances illustrate commercial resilience, despite the upcoming end of the concession.
However, these gains were overshadowed by a dramatic deterioration in operating results, which went from a profit of 42.21 billion in 2023 to a loss of 578.95 billion in 2024. Net profit also significantly deteriorated, dropping to 510.57 billion, compared to a profit of 11.47 billion the previous year.
Among the main factors explaining this sharp decline are: an explosion in credit losses, from 1.60 billion to 360.91 billion; accounting adjustments related to the imminent end of the concession, leading to asset impairments and exceptional charges.
This loss coincided with the end of its 20-year electricity distribution concession in Uganda, officially expiring on March 31, 2025. The government refused to renew its concession, stating that it had been slow to expand connections and lower prices for consumers.
While the government has already paid $118 million, Umeme is pursuing an additional $292 million (approximately 1,050 billion Ugandan shillings) through international arbitration in London.
